Shares of this Tata Group stock under the ‘large-cap’ category gets a ‘Buy’ call from a leading brokerage with a potential upside of more than 25 percent. The company’s scrip is trading near the 52-week high levels.
The stocks of Tata Motors Limited, an automobile giant, opened their trading hour today at Rs 640.20 and currently trade at Rs 644 gaining approximately 1.50 percent as compared to the previous closing levels of Rs 635.30 apiece.
In July 2023, the company published its financial results for Q1FY23-24 breaking the chain of consistent rise in revenues and net profits. The company reported revenues at Rs 102,236 crores as compared to Rs 105,932 crores of revenues during the previous quarter, and, the net profits slipped to Rs 3,089 crores from Rs 5,404 crores during the March 2023 quarter.
Having a positive outlook for the company, ICICI Direct gave a ‘Buy’ recommendation for the stock with a target price of Rs 810 indicating an upside of 26 percent as compared to the current stock prices prevailing in the market.
The rationale behind providing such a recommendation is pertaining to strong and healthy financials & return ratios, net debt-free vision for FY24-25, Promoter’s support for Electronic Vehicle (EV) foray, and the ‘JLR’ segment estimated to post profitability in the current financial year.
The latest shareholding pattern data, available for the June 2023 quarter, portray the Promoters holding a 46.39 percent stake, and the Foreign Institutional Investors (FIIs) holding a 17.72 percent stake in the company.
Incorporated in 1945, Tata Motors Limited is engaged in the business of designing, developing, manufacturing, and selling various automotive vehicles. The company offers passenger cars, medium & heavy commercial vehicles, electric vehicles, and other related accessories and spare parts.
Apart from the domestic operations in India, the company has a global footprint, some of which include the United States, China, the United Kingdom, and many more.
Written by Amit Madnani
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