Tata Motors shares extended their impressive rally for the third consecutive day during Friday’s trading session. The stock surged by 1.74 percent, reaching a one-year peak of Rs 1,110. It was last observed trading 1.23 percent higher at Rs 1,104.50. At this level, the scrip has accumulated a 39.72 percent gain on a year-to-date (YTD) basis.
Nomura has upgraded Tata Motors’ rating to ‘Buy’ from the previous ‘Neutral’ recommendation. The brokerage firm has also increased the target price to Rs 1,294. Nomura believes that the successful execution by Jaguar Land Rover (JLR) could result in significant gains for Tata Motors’ stock. Additionally, the proposed demerger is expected to unlock value for the commercial vehicle business. Technical analysts are also optimistic about the stock in the short term.
Kiran Jani, Head of Technical Research at Jainam Broking, suggested buying the stock at current levels with an upside target of Rs 1,150 and a stop loss at Rs 1,040. According to Osho Krishan, Senior Research Analyst at Angel One, Tata Motors has shown strength in the market and is expected to find support around the Rs 1,050-1,040 range, with a psychological support at Rs 1,000. The immediate resistance is likely to be around the Rs 1,150 level, with a breakout formation in the near future.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, mentioned that the script has the potential to reach an upside target of Rs 1,180 in the near term. It is advised to keep a stop loss at Rs 1,070 for this trade. The stock experienced significant trading volume on BSE today, with approximately 8.67 lakh shares being exchanged at the time of writing. This figure surpassed the two-week average volume of 5.13 lakh shares.
The turnover on the counter amounted to Rs 94.83 crore, resulting in a market capitalization (m-cap) of Rs 3,67,075.55 crore. Currently, the stock is trading above the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) is at 72.96. An RSI level below 30 indicates oversold conditions, while a value above 70 suggests overbought conditions.
The company’s stock has a price-to-equity (P/E) ratio of 45.89 and a price-to-book (P/B) value of 12.03. The earnings per share (EPS) is reported at 23.77 with a return on equity of 26.22. Tata Motors is set to disclose its June 2024 quarter (Q1 FY25) results on August 1. Currently, promoters hold a 46.36 percent stake in the automaker.