Tata Motors’ share price saw a strong surge of 4% during Friday’s afternoon session, reaching a high of Rs 800.50. The stock, which had closed at Rs 764.95 in the previous session, opened at Rs 767.95. As of the latest updates, the stock was trading at Rs 796.75, marking a gain of 4.16%. This rise brought the company’s market capitalisation to Rs 2,93,201.60 crore. Despite this upward momentum, Tata Motors' share price remains below its 52-week high of Rs 1,179.05, which was recorded on July 30, 2024.
The company’s stock has gained more than 6% over the past five trading sessions. However, the stock has also faced a significant decline of 18.36% over the last six months. On a long-term basis, Tata Motors has delivered an impressive return of 316.91% over the past five years. Friday's rise marked the fourth consecutive session of gains, which has been partly driven by a favorable recommendation from global brokerage firm CLSA. The firm added Tata Motors to its India focus portfolio, citing that the stock’s 35% drop from its peak already reflects potential risks, including a slowdown in the commercial vehicle segment and challenges with its Jaguar Land Rover (JLR) portfolio.
Various brokerages have shared their perspectives on Tata Motors, reflecting both optimism and caution about the stock’s future.
- Nomura India: The brokerage has a positive outlook, setting a target price of Rs 990.
- DAM Capital: While maintaining a ‘buy’ rating, DAM Capital set a target price of Rs 870. It expects JLR's volumes to grow at a compounded annual growth rate (CAGR) of 6.5% between FY2025 and FY2027. However, in its bear case scenario, it anticipates a lower target price of Rs 675, indicating a possible 9% correction from Thursday’s closing price.
- Sharekhan: The firm has a bullish target price of Rs 1,099, citing expectations of sustained improvement in JLR, the passenger vehicle (PV) segment, and the commercial vehicle (CV) business, alongside reduced automotive debt. Sharekhan highlighted that the stock trades at a P/E multiple of 12.2x and an EV/EBITDA multiple of 5.3x for FY2027 estimates.
- LKP Securities: LKP considers Tata Motors a ‘value buy’ at current levels, setting a price target of Rs 970. It points to a recovery in domestic CV demand and the positive impact of recent product launches. The firm also noted that the stock has corrected by approximately 40% from its 52-week high, making it an attractive investment opportunity.
This series of recommendations and market movements suggests a mixed outlook for Tata Motors, with some analysts seeing the potential for recovery, especially in the long term, while others remain cautious, considering the broader risks in the automotive sector.
