Tata Motors shares: Tata Motors Ltd (NSE: TATAMOTORS) share is in focus during trading. The company’s share rose 1% to an intraday high of Rs 810.
Its previous closing price was Rs 780.10. A brokerage firm believes that at this price, these shares can jump 60%.
The brokerage firm has given the stock an ‘outperform’ rating. Its target price is ₹ 1278, which is 60% higher than the current levels.
A Broker-dealer’s Target Price
The broker-dealer has also given its “equal-weight” rating on this stock with a target price of ₹ 920. The brokerage has said in its note that JLR’s wholesale sales for the quarter were ahead of their estimates.
According to the broker-dealer, the brokerage expects a 9.6% EBIT margin for JLR for the current quarter and to meet the FY25 margin guidance of 8.5%, JLR will have to report an EBIT margin of 9.5% in the fourth quarter. Who also said that margin guidance for FY26 will be a key trigger to watch.
A global brokerage firm has a “buy” rating on Tata Motors Ltd with a target price of ₹990, indicating a potential upside of 25% from current levels. The brokerage expects a free cash flow in the third quarter due to higher volumes.
According to the global brokerage firm, from a net debt of ₹22,000 crore or ₹60 per share in the second quarter, Tata Motors Ltd could reach a net cash of ₹86 per share by FY27.
At 4.2 times enterprise value to FY27 EBITDA, the global brokerage firm believes Tata Motors is attractively valued.
22 Experts Recommend Buying
Out of 36 analysts covering Tata Motors Ltd, 22 have a ‘buy’ rating on the stock, 9 of them have a ‘hold’ rating, while five of them have a ‘sell’ rating on the stock.
Quick Fact
Tata Motors
| Company name | Tata Motors |
|---|---|
| Previous close | ₹780.10 |
| Brokerage rating (domestic) | Outperform |
| Possible target price (domestic) | ₹1278 (60% upside) |
| Brokerage rating (broker-dealer) | Equal-weight |
| Possible target price (broker-dealer) | ₹920 |
| JLR wholesale sales (Q3) | Ahead of estimates |
| Expected JLR EBIT margin (Q3) | 9.6% |
| FY25 EBIT margin guidance | 8.5% |
| Required EBIT margin (Q4) | 9.5% |
| FY26 margin guidance | The Key points to watch |
| Global brokerage rating | Buy |
| Possible target price (global brokerage) | ₹990 (25% upside) |
| Net debt (Q2) | ₹22,000 crore (₹60/share) |
| Possible net cash (FY27) | ₹86/share |
| Valuation (enterprise value to FY27 EBITDA) | 4.2 times |
| Analysts recommending buy | 22/36 |
| Analysts recommending hold | 9/36 |
| Analysts recommending sell | 5/36 |
| Wednesday close price | ₹794.85 |
| Wednesday price change | 0.3% higher |
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