Shares of Tata Motors (NYSE:TTM) have recently dipped to ₹621.85 from ₹643.80 on NSE, presenting a potential buying opportunity ahead of the company's anticipated strong Q2 FY24 results. The dip has been interpreted as a 'base building mode' for the automaker, according to Avinash Gorakshkar from Profitmart Securities. He suggests that investors should 'buy on dips', anticipating an improved performance in the October to December 2023 quarter due to festival buying and expected Diwali sales.
The predicted robust Q2 numbers are driven by a turnaround in Jaguar Land Rover (JLR) numbers and optimism surrounding festival sales. Further share growth is anticipated if share levels sustain above ₹600, as suggested by Ganesh Dongre from Anand Rathi.
In addition to the expected strong Q2 results, the upcoming Tata Technologies' initial public offering (IPO) is set to have a positive impact on Tata Motors' balance sheet. Arun Kejriwal of Kejriwal Research and Investment Services pointed out that the IPO could enhance the financial position of the parent company.
Investors are advised to maintain a trailing stop loss at ₹600 levels for holders and new investors are advised to buy at the current market price with the same stop loss, according to Dongre. This strategy could potentially provide a safeguard against significant losses while allowing for profit from any price increases.
InvestingPro Insights
Based on real-time data from InvestingPro, we can provide some insights that align with the trends discussed in the article.
InvestingPro data indicates that Tata Motors (TAMO) has been experiencing accelerating revenue growth. This aligns with the article's mention of expected strong Q2 results driven by a turnaround in Jaguar Land Rover (JLR) numbers and optimism surrounding festival sales.
The data also suggests that TAMO's net income is expected to grow this year, which is consistent with the positive impact anticipated from the upcoming Tata Technologies' initial public offering (IPO) on Tata Motors' balance sheet.
InvestingPro Tips also highlights that TAMO is a prominent player in the Automobiles industry, which is important for potential investors to consider.
For more in-depth insights and tips, you can check out the full list of InvestingPro Tips for TAMO here. These tips are part of the InvestingPro product, which includes additional tips for other companies as well. In total, there are 12 additional tips available for TAMO on InvestingPro.
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