Stock To Buy: KR Choksey Maintains Positive Outlook On Tata Stock, Sees 39% potential Upside

KR Choksey has a Buy on Tata Motors Limited with Rs 572/share target price. According to the brokerage's estimated target price, the stock is likely to give a positive return of up to 39% if purchased at the current market price. Tata Motors is Tata group's Automobile sector large-cap company with a market capitalisation of Rs 1,36,666 crore.

Stock outlook & Returns on investments

The share price of Tata Motors on NSE closed at Rs 411.50/share, down 0.18% from the previous close. The stock hit the 52-week low at Rs 366.20/share on 12 May 2022, and the 52 week high at Rs 528.50/share on 18 June 2022. The stock surged 6.99% in the last 1 week and 4.39% in the last 3 months, respectively. However, it has fallen 18.39% in the last 1 year. In the last 3 years, it has given maximum 110.83% return. Whereas, it has fallen 5.3% in the last 5 years. 

Brokerage's comments

According to the brokerage, Tata Motors' JLR arm has seen wholesale volumes grow by 11.1% YoY/ 2.7% QoQ. Domestic PV volumes have grown by 32.8% YoY while CV volumes have declined by 4.2% YoY. "We expect consolidated sales to grow by 14.9% YoY/ 4.2% QoQ. We expect EBITDA margin to improve by 51 bps YoY/ 209 bps QoQ due to JLR product mix improvement, operating leverage, softening of RM costs, and cost savings," the brokerage said. 

Key Parameters:

(1) Product mix improvement at JLR
(2) Update on chip supplies
(3) JLR operating and profitability guidance
(4) Market share of domestic PV and CV business
(5) Progress on electric mobility

Disclaimer

The stock has been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.