Tata Motors (NYSE:TTM)' stock price experienced a minor decrease of -0.12% on Wednesday, closing at Rs 645.95 per share from an opening of Rs 645.45. The shares traded between Rs 649.8 and Rs 643.8 during the day, with a total of 356,829 shares changing hands on the BSE. The company's market cap stands at Rs 247,163.46 crore, with a 52-week range of Rs 677.9 to Rs 375.5.
Despite this recent dip, Tata Motors shares have shown impressive performance over the past year, surging by 48.52% and gaining 63.60% in 2023 alone. This marks a significant increase of 365% over three years. The company's shares hit an all-time high of Rs 677.90 on October 16, 2023, and have maintained above Rs 600 for four months straight.
The company's performance has been buoyed by its focus on increasing its market share in the Passenger Vehicle (PV) segment, which rose from 8% in FY21 to 13.4% in the first half of FY24. Additionally, Tata Motors' early leadership in Electric Vehicles (EVs) in India has contributed to its strong performance.
Tata Motors' standalone business is currently experiencing a mid-upcycle led by cyclical recovery both in PV and Commercial Vehicles (CV). The favorable product cycle is expected to drive Jaguar Land Rover's (JLR) outperformance.
The company reported a net profit of Rs 3,764 crore in the last quarter, a significant improvement from a loss of Rs 944.61 crore in the September 2022 quarter. JLR's volume ramp-up has resulted in strong revenue and improved profitability for Tata Motors, while its domestic CV sector has benefited from underlying economic strength.
Brokerages have set optimistic target prices for Tata Motors shares following their Q2 earnings. CLSA has set a target at Rs 803, Morgan Stanley at Rs 711, Prabhudas Lilladher at Rs 785, and YES Securities at Rs 773. The company expects a revenue/EBITDA Compound Annual Growth Rate (CAGR) of 8%/17% in FY23-26E and has raised its FY24/25 consolidated Earnings Per Share (EPS) by 3-4%. Brokerages maintain a ‘BUY' stance on Tata Motors shares.
InvestingPro Insights
To enrich the article with real-time data and insights, let's consider some InvestingPro Tips. Firstly, Tata Motors (TAMO) is noted for its accelerating revenue growth, which aligns with the company's reported net profit in the last quarter. This growth is expected to continue, with net income predicted to grow this year.
In addition to this, the company yields a high return on invested capital and has a strong earnings profile, which should allow management to continue dividend payments. This aligns with the company's strong performance and the optimistic target prices set by various brokerages.
Lastly, it's worth noting that Tata Motors is a prominent player in the Automobiles industry, underlined by its leadership in Electric Vehicles (EVs) in India, and its stock generally trades with low price volatility.
InvestingPro offers additional tips and insights for a total of 15 tips for Tata Motors. These include data points like valuation, price movements, and debt levels, which can further enhance your understanding of the company's financial health and performance.
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