Buy Tata Group Stock, Signaling Upside, For Double Digit Return In 90 Days: ICICI Direct

Leading brokerage ICICI Direct has assigned buy call to Tata Group stock, Tata Motors Ltd with a target price of Rs 460. The current market price of Tata Motors is Rs 412 apiece with an intraday decline of 0.31% on BSE. If you buy the stock at its current market price, you will receive a potential gain of 11.65%. The company has a market capitalisation of Rs 1,37,081.51 crore. Check key takeaways below:

1. Tata Motors Ltd (TML) Stock Outlook

The current market price of Tata Motors is Rs 412 apiece with a 52-week high quoted at Rs 536 apiece and 52-week low at Rs 339 apiece, respectively. The stock is currently trading at a discount of 23% from its 52-week high range.

2. Tata Motors Technical Outlook

The Auto index is regaining upward momentum after forming a higher base above the 100-day EMA that coincided with multi-year breakout zone of 12100. The share price of Tata Motors remains lucrative at the current juncture as it bounced from 52-week EMA, which has offered incremental buying opportunity on several occasions since August 2020.

Hence, it offers a fresh entry opportunity with a favourable risk reward set up. According to ICICI Direct, "We expect the share price to head towards ₹ 460 in coming months as it is 61.8% retracement of the August- September decline (₹ 494-390)."

3. Tata Motors Strength/Weakness

When it comes to its strength, FII/FPI or institutions are increasing their shareholding. In terms of opportunity, it is a stock with low PE. The weaknesses of TML include its high debt, inefficient use of shareholder funds, and degrowth in revenue and profit.

4. Tata Motors 5-Years Return

The stock has given a negative 5-years return at 3%. The stock has given a positive return of 250% in the last 3 years and 9% return in the last 1 year.

5. Tata Motors Latest Quarterly Results

The company for the quarter ended June 30, 2022 announced a consolidated total income of Rs 72,822 crore, down 8% from last quarter total income of Rs 79,341 crore. Tata Motors declared a net profit after tax of Rs -4987 crore in the latest quarter.

6. About Tata Motors Ltd

Tata Motors Ltd is one among India's largest automobile manufacturers, with a footprint in commercial cars, sports utility vehicles, trucks, buses and defence vehicles. The company operates in two major segments-Automotive Operations and Other Operations. Tata Motors was established in 1945 as part of the Tata Group and is headquartered in Mumbai, Maharashtra. On the National Stock Exchange (NSE), it has been allotted the symbol TATAMOTORS while the Bombay Stock Exchange (BSE) has allotted the company the number 500570.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.