Buy This Multibagger Tata Group Stock For Target Price Of Rs 516: Sharekhan

Leading brokerage Sharekhan has given buy call to the stock of Tata Motors Ltd for a target price of Rs 516 with a potential gain of 10%. The current market price of Tata Motors is Rs 467 apiece. The stock has given a return of 54% in 1 year, 257% in 3 years, and 8% in 5 years. The 52-week high of the stock is Rs 536 apiece and 52-week low of the stock Rs 268 apiece.

According to Sharekhan, "Tata Motors' (TAMO) Q1FY23 results lagged our expectations, largely due to poor performance of JLR business, marred by unfavourable volume mix. Performance of CV and PV businesses was broadly in-line with expectations. Overall performance and FCF are expected to improve gradually, driven by a positive business outlook, new launches, easing chips shortage situation, cooling commodity prices, and favourable macro-economic outlook."

Management maintains its long-term targets with a caution on inflation and geopolitical situations. TAMO's focus on EVs continues to grow multifold in Q1FY23; electric CVs are getting ready for the next leg of growth.

According to Sharekhan, "We maintain Buy with an unchanged PT of Rs. 516, driven by expected recovery in volumes and operational improvement across its business verticals and geographies."

Tata Motors Group (Tata Motors) is a $37 billion organisation. It is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's largest OEMs offering an extensive range of integrated, smart and e-mobility solutions.

The above stock was picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.