The stock zoomed 2.49% to Rs 512.65 against Rs 500.20 in the previous session. Market cap of the firm stood at Rs 1.67 lakh crore. Shares of Tata Motors hit a fresh 52-week high for the second consecutive session amid a positive sentiment in the broader market today. The stock zoomed 2.49% to Rs 512.65 against the close of Rs 500.20 in the previous session. The stock breached the high of Rs 499.8 hit in the previous session on May 8, 2023. In the current session, Tata Motors stock opened at Rs 501.15 on BSE. The auto stock has been gaining for the last two sessions. Market cap of the firm stood at Rs 1.67 lakh crore. Total 8.99 lakh shares changed hands amounting to a turnover of Rs 45.65 crore on BSE. Tata Motors stock has gained 24.8% per cent in a year and risen 30 per cent in 2023. Tata Motors stock hit a 52-week low of Rs 366.05 on May 12, 2022.
With today’s rally, the stock has entered the overbought zone. In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 72.6, signaling it's trading in the overbought zone. In the last session, the RSI of the Tata Group stock stood at 62.2. 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.
The stock has zoomed 5.66% or Rs 27.5 since April 28 this year. The firm announced its April sales numbers on May 1. The April sales show was a muted performance as commercial vehicles saw a dip but sales of passenger vehicles rose in April. However, the overall domestic sale numbers dipped in April.
Tata Motors’ domestic and international market sales for April stood at 69,599 vehicles, which was 4 per cent lesser compared to 72,468 units during April 2022.
Here’s a look at what analysts said on the prospects of the Tata Group stock.
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.”
Abhishek Gaoshinde, Deputy Vice President Research at Sharekhan by BNP Paribas said, "Tata Motors is witnessing an improvement in all business verticals – JLR, CVs, and PVs. The company is witnessing robust demand in JLR and is expected to deliver better operational efficiencies, aided by aggressive launches and market positioning. We expect sequential improvement in operating performance in JLR as well as standalone business in Q4FY23E. While JLR’s free cash flow is expected to improve sharply in Q4FY23E, the domestic PV and CV business continue to maintain traction in volumes. Along with an improvement in operating performance a value unlocking in Tata Technologies would help Tata Motors in reducing net automotive debt in medium term. Currently we have Buy rating on the stock with target price of Rs 516."
Deven Mehta, Equity Research Analyst, Choice Broking said, "The stock was forming higher high higher lows on weekly charts since last 7 weeks and trading at 52-week high levels. Currently, the stock is moving above all important moving averages. The stock has given a breakout of a downward slopping trend line which indicates strength in the stock. Any dip in the stock can be a buying opportunity. We can also witness a Bollinger band expansion on higher side after a squeeze which indicates strength. With a medium term outlook, one can buy Tata Motors at the current market price of Rs 500. It can also be added near Rs 475 for a target price of 540."
Ravi Singh, Vice President and Head of Research, Share India said, "Investors are quite optimistic on Tata Motors shares amid the rise in demand and recovery that the passenger vehicle side of Tata Motors and the EV side is also seeing a strong growth. Tata Motors is doing good in terms of the domestic EV space with its passenger vehicles having almost 80% market share. On the technical setup, the momentum indicators are indicating positive strength in the counter and the stock may touch the levels of Rs 520 in near term."
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.