ICICI Direct has buy call on Tata Motors Ltd. with a target price of Rs 515. Time period given by analyst is 3 months when the stock price can reach defined target. The brokerage recommended to keep stoploss at Rs 389.
Tata Motors, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 144,709.67 crore) operating in the auto sector.
Investment Rationale
Select stocks from the auto sector may witness renewed momentum amid a sustained broader market recovery. Stocks like Tata Motors are likely to perform better in the coming trading sessions along with the ongoing recovery seen in sectoral peers.
In the current fall the stock has declined sharply on the back of severe FIIs selling but found support near Rs 380. Since then it has been crawling towards its Call base of 450 with significant OI addition in the future segment, indicating fresh long accumulation at lower levels.
The stock has taken support near Rs 380-400 levels on multiple instances in the past. Also, looking at the significant delivery volume activity in October 2021 and then in early March 2022, these levels seem very crucial. In such a scenario, the positive bias may continue in the stock till these levels are held.
The Delivery Z score reading in the cash segment indicates there is still room for further delivery pick-up in the coming days. In due course, the up move should pan out in the stock
Financials
For the quarter ended 31-12-2021, the company has reported a consolidated Total Income of Rs 72931.86 crore, up 17.17% from last quarter Total Income of Rs 62245.73 crore and down 4.50% from last year same quarter Total Income of Rs 76365.79 crore. Company has reported net profit after tax of Rs -1338.17 crore in latest quarter.
Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of 31-Dec-2021, while FIIs owned 14.57 per cent, DIIs 13.64 per cent.
Tata Motors, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 144,709.67 crore) operating in the auto sector.
Investment Rationale
Select stocks from the auto sector may witness renewed momentum amid a sustained broader market recovery. Stocks like Tata Motors are likely to perform better in the coming trading sessions along with the ongoing recovery seen in sectoral peers.
In the current fall the stock has declined sharply on the back of severe FIIs selling but found support near Rs 380. Since then it has been crawling towards its Call base of 450 with significant OI addition in the future segment, indicating fresh long accumulation at lower levels.
The stock has taken support near Rs 380-400 levels on multiple instances in the past. Also, looking at the significant delivery volume activity in October 2021 and then in early March 2022, these levels seem very crucial. In such a scenario, the positive bias may continue in the stock till these levels are held.
The Delivery Z score reading in the cash segment indicates there is still room for further delivery pick-up in the coming days. In due course, the up move should pan out in the stock
Financials
For the quarter ended 31-12-2021, the company has reported a consolidated Total Income of Rs 72931.86 crore, up 17.17% from last quarter Total Income of Rs 62245.73 crore and down 4.50% from last year same quarter Total Income of Rs 76365.79 crore. Company has reported net profit after tax of Rs -1338.17 crore in latest quarter.
Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of 31-Dec-2021, while FIIs owned 14.57 per cent, DIIs 13.64 per cent.
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