According to brokerage ICICI Securities, Tata Motors has a strong bullish trend, as the risk-reward ratio of its stock is favorable on its 52-week EMA. The brokerage company has advised investors to buy Tata Motors shares in the price range of Maintaining a stop loss of 410–417 378, which would push the stock’s target price 460.00 in the 3 months of the target period.
Research analysts at ICICI Securities said in a note that “the auto index is trending upwards after forming a higher base above the 100-day EMA, which coincides with the multi-year breakout zone of 12100. Tata Motors”. The share price of U.S.A. remains attractive at the current juncture as it has bounced off the 52-week EMA, which has offered several incremental buying opportunities since August 2020. Hence, it is a fresh buy with a favorable risk reward. Provides entry opportunities.”
He further added that “On the structural front, in the last 11 months, the stock has outperformed 61.8% of the September-October 2021 rally ( 268-536). The slow movement of the retracement signifies the underlying strength which bodes well for the stability of the next leg of the up move.”
As for Tata Motors shares, he claimed that “we expect the share price to move up”. 460 in the coming months, as this is a 61.8% retracement of the August-September decline ( 494-390). Among the oscillators, the weekly Stochastic has registered a bullish crossover amid oversold conditions, indicating a positive bias, moving further.”
“The company reported the Q1FY23 results on mute. Consolidated EBITDA margin for the quarter was 8.2%, down 650 bps QoQ, primarily driven by weak performance in JLR, which had EBITDA margin of 6.3% and EBIT margin negative 4.4%. was on consolidated loss after tax 5,007 crore. In contrast, the Indian operations performed well in the CV and PV segments. However, the management commentary was positive on the demand outlook at ~2 lakh units with pending order book at JLR. With the improvement in chip availability, the company was confident of increasing wholesale volumes from Q2 FY2013, with the EBIT margin target of 5% retained for the full year i.e. FY2013 and the FCF target at £1 billion. was unchanged. It continues to strive to be pure automotive debt free (~ 50,000 crore) by FY24E. On the Indian demand outlook, it expects the CV space to grow in double digits in FY13, while on the PV side already operating close to optimal levels,” said research analysts at ICICI Securities.
“We build 14.3% consolidated sales CAGR for TML in FY 2012-24E, along with improvement in margins to a level of 14.1% by that time and return on profitability at PAT level. On CMP, the stock is trading at ~4.2x EV/EBITDA on FY24E numbers, with RoCE-RoE seen in the range of ~13-15% in FY24E. It remains committed to its long-term vision of healthy profitability, positive free cash flow generation and consequently leveraged balance sheet at JLR. With a broader outlook, other positive drivers include secured funding for its EV business (PV), launch of affordable offerings in the e-PV domain (Tiago) as well as winning large orders in the electric-bus space domestically. where did it go.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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