Till the afternoon on Friday, the Indian benchmark indices were trading in the red. The Nifty50 was trading 0.21 percent lower at 17,856 levels while the Sensex was at 60,668 levels.
Amid the volatility, here are 2 Tata group stocks that are recommended by analysts for an upside of up to 29%:
Tata Power Company Limited
The shares of Tata Power Company were trading marginally lower at Rs 205 levels till the afternoon on Friday. The stock is on a downward trend and has lost approximately 10 percent in the last six months.
The company reported total revenue of Rs 14,129.12 Crore in Q3FY23, compared to Rs 10,913.14 Crore in the same period the previous year. Furthermore, the company turned profitable, posting a profit after tax of Rs 54.19 Crore versus a loss of Rs 106.17 Crore YoY.
Tata Power Company Ltd is primarily involved in the business of the generation, transmission, and distribution of electricity. It aims to produce electricity completely through renewable sources.
ICICI Securities Limited has a ‘Buy’ call on the Tata group stock with a target price of Rs 262 per share, an upside of 28% from the current levels.
We revise our estimates for FY23E and FY24E factoring in the higher coal prices and earnings on the sale of power from the Mundra plant under section-11 of the Electricity Act as well as the impact of the recent CERC order on Mundra’s FY23E earnings, the brokerage mentioned in its report.
Tata Motors Limited
The shares of Tata Motors were trading marginally higher at Rs 437 levels till the afternoon on Friday. In the past month, the stock has edged up by more than 6 percent.
In Q3FY23, the company reported a total revenue of Rs 88,488.59 Crore compared to Rs 72,229.29 Crore in the same period the year earlier. Further, the company turned profitable after posting a profit after tax of Rs 2,939.78 Crore compared to a loss of Rs 1,338.17 Crore.
Tata Motors Limited, part of Tata group, is engaged in the manufacturing of products passenger cars, trucks, vans, coaches, and buses. The company is also a market leader in the electric passenger vehicle segment in India.
Global brokerage Jefferies is bullish on the Tata group stock and has a ‘Buy’ call with a target price of Rs 565 per share representing an upside of 29% from the current levels.
“JLR maintained its 4Q guidance and expects chip constraints to ease gradually. It has a strong order book with 74% of orders for new RR, RR-Sport & Defender. We now expect a lower net loss in FY23 and raise FY24-25E EPS by a slight 3-5%. Despite the near-term pressures at JLR, we like Tata given the cyclical recovery and improved franchise in India, early leadership in India EVs, and JLR focus returning to higher-margin Land Rover models,” said the brokerage.
Written by Anoushka Roy
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
