Tata Motors shares continue to maintain their upward trajectory, with the price surging 2.51 per cent on Friday to close at Rs 1,118.40 apiece on the BSE. The rise in the share price for the third consecutive day comes amid heavy demand after global brokerage Nomura upgraded its rating for Tata Motors from ‘Neutral’ to ‘Buy’.
In its recommendation note, Nomura also increased the price target of Tata Motors shares by 26 per cent to Rs 1,294, compared with Rs 1,194 earlier.
Nomura believes Jaguar Land Rover’s (JLR) execution can lead to significant upsides for the Tata Motors stock.
Tata Motors’ proposed demerger plan to hive off its passenger vehicle (PV) and commercial vehicle (CV) business may unlock value for the company’s CVs business.
In one of the strongest rally, the multibagger shares of Tata Motors jumped by Rs 470.05 or 73.22 per cent to Rs 1,120 in the past one year. Tata Motors stock hit a 52-week low of Rs 593.50 on August 25, 2023.
Nomura hiked the target multiple for JLR to 3.5 times its Enterprise Value-to-EBITDA from 2.75 times given potential upsides.
EBIT margins for Tata Motors are likely to rise 8.5 per cent in financial year 2025 from 7.8 per cent earlier to 10.1 per cent by financial year 2027 with further potential to rise to 11- 12 per cent by financial year 2030, the brokerage said.
The Tata Group firm will announce its Q1 earnings on August 1.
On Friday, July 26, the BSE Sensex also surged as much as 1,250 points or over 1.5 per cent to 81,290.
Comments
0 comment