Tata Motors Ltd shares reached a new high Wednesday, closing in on the Rs 1,000 barrier. Tata Motors' shares rose 1.40% to a new high of Rs 976.30 in early trading on Wednesday. The multibagger stock has soared 130% in a year and is up 23% this year. Tata Motors' stock fell to a 52-week low of Rs 400.40 on March 28, 2023. With today's rise, the Tata Group is up 144% from its 52-week low.
Today, around 4.64 lakh shares were traded on the BSE, for a total of Rs 45.06 crore in transaction. The firm's market capitalization grew to Rs 3.22 lakh billion.
ICICI Direct has set a price target of Rs 1,000 for Tata Motors stock.
"With stupendous run up in Tata Motors stock price (>2x in last 1 year) and having captured much of the up move, we now assign HOLD rating to the stock, thereby valuing it at Rs 1,000 on SOTP basis (10x, 2.2x FY26E EV/EBITDA to India, JLR; Rs 230 value to Indian E-PV & stake in Tata Tech," the brokerage said in a statement.
Goldman Sachs has retained its 'buy' rating on Tata Motors shares, with a target price of Rs 1,020.
Motilal Oswal's target price for the Tata Group shares is Rs 1,000.
The firm expects JLR will fuel the next leg of expansion. Tata Motors should see a good comeback as JLR's supply-side challenges ease and commodity headwinds stabilize in India.
"While the India CV and PV businesses would see some moderation in growth in FY25E, the focus shifts to margin expansion-led earnings growth, which is likely to sustain," Motilal Oswal, chairman and CEO of Motilal.
Tata Motors' stock has a one-year beta of 0.4, showing relatively low volatility during the time.
In terms of technicals, Tata Motors' relative strength index (RSI) was 74.8, indicating that the stock is overbought. Tata Motors' shares are trading above the 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.
Prabhudas Lilladher repeated his target price of Rs 1,010 for the company. Tata Motors had an edge due to volume ramp-up, a strong order book, and a diverse portfolio of higher ASP vehicles. Lower CV discounts also aided profits in the third quarter, it stated.
