In this article, we will discuss:
- Tata Motors: A Closer Look at the Company Behind this Hot Auto Stock
- Tata Motors Share Prices: Historical Analysis
- Tata Motors Share Prices Targets for 2024
- Key Factors in Tata Motors Share Price Analysis
- Tata Motors Share Prices Targets: What to Expect?
On the back of an increasing push for electric vehicles (EVs) and rising demand for passenger as well as commercial vehicles, India’s automobile sector has rapidly emerged as one of the most dynamic segments of the economy. As investors and traders flock to this sector, Tata Motors, one of the most stable and established auto companies in the country, appears to be a particular favourite.
If you’re considering investing in this buzzing auto stock, it’s crucial to examine Tata Motors' share price historicals and check out the Tata Motors' share price targets experts have set for near-term trading sessions. Let’s explore these key details.
Tata Motors: A Closer Look at the Company Behind this Hot Auto Stock
Tata Motors Limited, established in 1945, is a cornerstone of the Indian automotive industry and part of the larger Tata Group. The company was originally founded as a locomotive manufacturer. However, over the past eight decades, Tata Motors has significantly diversified its operations to become a leading global automobile manufacturer. Its portfolio now encompasses a wide range of cars, utility vehicles, buses, trucks and even luxury vehicles — showcasing the company’s versatility in the automotive sector.
In 2008, Tata Motors made it to the global headlines for its acquisition of the prestigious British car brands Jaguar and Land Rover (JLR). This move marked Tata Motors’ entry into the luxury car segment and significantly enhanced its international footprint. Today, Tata Motors stands as a pioneer in the Indian automobile industry. The company has been at the forefront of introducing groundbreaking products like the Tata Nano, which was launched in 2008 and aimed to be the world's cheapest car — while still maintaining quality and safety standards.
As the global chatter around sustainability grows louder, Tata Motors has kept pace by investing heavily in green and electric vehicle (EV) technologies. The company's current focus on electric mobility and eco-friendly solutions highlights its dedication to future-proofing its products and contributing to a greener planet.
Tata Motors Share Prices: Historical Analysis
To better understand if this auto giant is a good fit for your portfolio, it’s important to analyse Tata Motors’ share price historicals and evaluate how the company has performed in the past. A look back at the company’s share price reveals that despite occasional dips, Tata Motors' share price historicals have been predominantly bullish over the past three years.
In 2023, the company’s stock was the only one among the Nifty 50 stocks to double in price. Experts recommend that despite this steep bullish performance, the company’s stock may be worth considering because of its declining debt, rising EBITDA margin and high-potential JLR segment.
More recently, Tata Motors' share price historicals reacted positively to the company’s strong Q3 results — with the price rallying by over 7% early in February 2024 following reports of its consolidated net profit rising two-fold. To investors’ delight, the share price hit a record 52-week high of ₹950 in the first week of February this year.
Tata Motors Share Prices Targets for 2024
For traders interested in leveraging short-term price movements, Tata Motors' share price targets are critical factors to assess and evaluate. Although recommendations vary slightly from one expert to the next, Tata Motors' share price targets ranged from ₹930 to ₹965 towards the end of January 2024.
Now, with the company’s shares showing a consistent upward trajectory even in mid-February, the consensus for Tata Motors' share price targets for the near term appears to be even higher, going up to over ₹995. While the shares closed at a little over ₹918 on February 14, experts suggest that fresh long positions can be considered if the price breaches the ₹930.55 mark.
Key Factors in Tata Motors Share Price Analysis
Beyond the analysis of Tata Motors' share price targets and Tata Motors' share price historicals, a host of other aspects also affect how the company performs on the bourses. They include the following driving factors.
Investor Sentiment
Investor sentiment can push stock prices upward or pull them down significantly. Fortunately, the current market sentiment towards Tata Motors is predominantly positive — thanks to the company’s robust performance in the electric vehicle (EV) and hydrogen fuel segments combined with improved financial performance.
This optimism is also enhanced by technical indicators, which reveal that the time may be apt for strategic profit booking and potential re-entry. Putting it together, we find that the current Tata Motors' share price targets are driven by a nuanced market perception that is mostly optimistic.
Financial Performance
How the market collectively feels about a company’s stock depends on various factors, the top among which is the company’s financial performance. In this respect, Tata Motors checks the right boxes because its recent financials have been consistently strong. The company’s Q3FY24 revenue jumped 25%, to ₹1,10,577 crore from ₹88,488 crore in last year’s Q3.
This revenue boost has been accompanied by a 137% jump in the net profit earned by Tata Motors during the same quarter — which came in at over ₹7,000 crore. Accompanying these notable financial metrics is a steep rise of 27% in JLR sales between October and December 2023.
Company-Specific Factors
In addition to the company’s financial metrics, a few other factors have also been driving Tata Motors' share price historicals upward in recent years. Top among these is the company’s notable success in the electric vehicles (EV) segment. The company currently leads the domestic EV market and has some interesting products in the pipeline.
This, coupled with its rapid deleveraging, makes it an attractive bet for investors and traders alike — so much so that Tata Motors now trades at 5X its EBITDA for FY26. While this may raise concerns about overvaluation, experts still consider it an attractive stock because of the high projected cash flows for FY25.
Industry Performance
Aside from investor sentiment and company-specific factors, the industry and broad market performance can also affect Tata Motors’ share price. Fortunately, even on this front, the auto giant appears to come out successful because the outlook for India’s automobile industry is mostly positive.
Even as the sector continues to gain prominence in the wake of India’s ambition to become the world’s 3rd largest economy, Tata Motors has an edge over its peers as the first company to meet the Domestic Value Addition (DVA) criteria in the four-wheeler and bus categories.
The auto sector is also being seen in a positive light following the interim budget 2024, which touched upon the government’s plan to bolster India’s EV ecosystem — where Tata Motors has the lead.
Tata Motors Share Prices Targets : What to Expect?
With Tata Motors' share price historicals being strong, and with the word around Tata Motors' share price targets turning out to be mostly bullish, the company’s near-term outlook seems buoyant. Analysts predict the stock could hit the ₹1,100 mark if the current continues.
That said, technical analysis of the stock indicates that it’s trading in the overbought zone — which may be a red flag for conservative investors and traders who are considering a long position in the stock.
Nevertheless, depending on your research, risk profile and trading goals, you may find that Tata Motors could be a worthy addition to your portfolio. To capitalise on the current Tata Motors' share price targets, you may want to buy this buzzing auto stock while it still has a bullish outlook.
In that case, all you need to do is download the Samco trading app today and trade on the go. With a wealth of real-time market metrics readily available at your fingertips, you’ll find that it’s easier to capitalise on opportunities in the market as and when they arise.
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