Tata Motors shares have gained after two days of consecutive fall. Market cap of the firm stood at Rs 1.65 lakh crore. Tata Motors shares have gained after two days of consecutive fall. Market cap of the firm stood at Rs 1.65 lakh crore. Tata Motors shares have gained after two days of consecutive fall. Market cap of the firm stood at Rs 1.65 lakh crore. Shares of Tata Motors hit their 52-week high today in line with the broader market rally. The stock zoomed 4.74% to Rs 499.8 against Rs 477.20 in the previous session. It opened at Rs 478.20 on BSE. The auto stock has gained after two days of consecutive fall. Market cap of the firm stood at Rs 1.65 lakh crore. Total 18.14 lakh shares changed hands amounting to a turnover of Rs 89.40 crore. Tata Motors stock has gained 21.54% per cent in a year and risen 28 per cent in 2023.
Tata Motors stock hit a 52-week low of Rs 366.05 on May 12, 2022.
In terms of technicals, the relative strength index (RSI) of Tata Motors stands at 62.2, signaling it's trading neither in the overbought nor in the oversold zone. Tata Motors stock has a one-year beta of 1.3, indicating very high volatility during the period. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Here’s a look at what analysts said on the outlook of the stock days ahead of the firm’s Q4 and fiscal earnings.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock is in a good up move and given a breakout above Rs 450 with a symmetrical triangle breakout on the daily chart, and is now trading at the 52-week high. After a good rally, there is small resistance near 515 levels. A closing above Rs 515 will take the stock to Rs 550–600 levels, with Rs 450 level acting as strong support for the longer term.”
Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, “Tata Motors has seen a massive spurt in price-volume and surged to test the 500 mark in today’s session. The stock has also breached the previous swing high, adding to a bullish quotient. However, on technical parameters, post the recent rally, the counter has entered an overbought region that indicates the possibility of some cool-off in the near period. The overall structure remains buoyant with a buy-on decline approach. As far as levels are concerned, the immediate support lies around Rs 480, followed by sacrosanct support of the Rs 465 zone. While on the higher end, sustenance above the Rs 500-510 zone could only trigger the next leg of rally towards the 52-week high zone.”
Vinit Bolinjkar, Head of Research, Ventura Securities said, “Tata Motors will announce its Q4FY23 results on May 12, 2023 and investors are eagerly anticipating a strong performance with significant revenue growth and profitability. The company has reported better-than-expected sales volume growth in its JLR, CV, and PV segments and thanks to price hikes implemented in Q3FY23, the company is anticipated to report strong revenue growth. Additionally, a decline in input costs is likely to further boost the company's profitability. Moreover, there is great excitement among investors as the company is expected to share the details of its GBP 15 bn capex plan for EVs in the Q4FY23 result conference call. The market has already factored in these positive developments, leading to a significant rally in the stock price. We are expecting a strong recovery in TML’s consolidated financials as supply-side issues are relaxing (for JLR) and commodity headwinds are easing (for PV and CV). It could improve the margin profile of the company and enhance its FCF generation in the coming years. We have a FY26 price target of Rs 715 per share, which represents an upside potential of 43.3% from the CMP.”
Meanwhile, the board of directors of Tata Motors is scheduled to meet on May 12, 2023 to consider and approve audited financial results of the company (Standalone and Consolidated), for the quarter and financial year ended March 31, 2023.
Tata Motors is likely to clock a 37 per cent rise in consolidated revenue led by a strong growth across JLR (+53 per cent), CVs (+18 per cent) and PVs (+7 per cent), said analysts at Emkay Global Financial Services.
"The company is likely to see consolidated Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expand by 140 bps, led by higher production in JLR, and supported by a strong margin performance in CVs," the brokerage firm added.