This Tata Stock Is Top Idea Pick From KR Choksey, Buy For 34% Return

Leading brokerage firm KR Choksey in its Top Idea picks for March 2023 has recommended investors to "Buy" the stock of Tata Motors Ltd. The brokerage has assigned a target price of Rs 572 apiece. According to the brokerage, if you buy the stock at the current market price, it can fetch gains up to 34%. It is a large-cap Tata Group stock that operates in the Auto sector. It has a market capitalisation of Rs 1,42,151 crore. Check below to know more:

Tata Motors Stock Performance and Returns

The stock of Tata Motors last traded at Rs 428 apiece, up 1.80% from the previous close of Rs 420.45 apiece. The stock recorded its 52 week low on 12 May 2022 at Rs 366.20 apiece and 52 week high on 17 August 2022 at Rs 494.40 apiece, respectively.

The stock has fallen 3.89%in 1 month, and 1.68% in 3 months, respectively. In the past 1 year, it has fallen 2.06%. it has given a multibagger return of 228.42% in the past 3 years. In the past 5 years, it has given 15.47% positive return.

Returns to consolidated profitability, performance expected to improve further

KR Choksey said, "We expect the company will grow at a CAGR of 15.7%/ 29.1% in revenues/EBITDA over FY22-25E. We value the company on a SOTP basis. We value the JLR & Chery-JLR JV businesses at 2.5x EV/EBITDA, TML-CV at 13.0x EV/EBITDA, and TML-PV business at 14.8x EV/EBITDA and arrive at a target price of INR 572 per share (unchanged), implying an upside of 36.0%. Accordingly, we maintain our "BUY" rating on the shares of Tata Motors."

About the Tata Motors

Tata Motors (TTMT) is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles. Besides operating in the Passenger vehicles (PV) and Commercial vehicles (CV) segments in the domestic Indian market, TTMT has a strong global network of subsidiaries and associate companies, including Jaguar Land Rover in the UK.

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.