Tata Motors shares hit fresh 52-week high; stock up 48% in 2023 so far; time to book profit or more upside possible?
Tata Motors share price: The stock traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 75.06. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 68.88. It has a price-to-book (P/B) value of 8.36.
- Jun 20, 2023,
- Updated Jun 20, 2023 4:32 PM IST
Shares of Tata Motors on Tuesday touched their fresh 52-week high levels. The stock today rose 3.23 per cent to hit an intraday high of Rs 584 over its previous close of Rs 565.75. It eventually settled 3.10 per cent higher at Rs 583.30. Turnover on the counter stood at Rs 33.04 crore, commanding a market capitalisation (m-cap) of Rs 1,93,742.55 crore.
The counter has gained 47.75 on a year-to-date (YTD) basis on BSE and 46.71 per cent in the past one year.
On the earnings front, Tata Motors reported a consolidated net profit of Rs 5,408 crore in the fourth quarter that ended on March 31, 2023 (Q4 FY23). The homegrown auto major had posted a consolidated net loss of Rs 1,033 crore in the January-March quarter of 2021-22 fiscal (Q4 FY22). Total revenue from operations stood at Rs 1,05,932 crore in Q4 FY23 as against Rs 78.439 crore in the year-ago period.
Technical analysts largely remained mixed on the counter. One of them said that the stock may scale above Rs 600 mark in the near term; while the other analyst suggested booking profit at current levels.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has given a fresh pennant breakout above the Rs 580 zone with decent volume participation. It may climb further to hit a near term target of Rs 610 and thereafter Rs 660 levels in the coming days. The support would be strong near Rs 558 zone."
AR Ramachandran from Tips2trades said, "Tata Motors is overbought and looks bullish on the daily charts with next resistance at Rs 589. Investors should be booking profits at current levels and wait for a dip near Rs 508 to buy for better returns in the coming weeks."
That said, Nuvama Institutional Equities has a 'Buy' rating on the Tata Motors stock with a price target of Rs 645, suggesting a 14 per cent upside from hereon. This is despite a 43 per cent jump in Tata Motors shares year-to-date. The domestic brokerage said the uptrend across Jaguar Land Rover (JLR) and India business should drive a revenue growth of 15 per cent compounded annually over FY23–25.
Nuvama said its constructive view on the stock is driven by expectations of continuation of a cyclical upturn in JLR and domestic PVs/CVs and a healthy product pipeline and order book.
The scrip has an average target price of Rs 609.22, Trendlyne data showed, suggesting a potential upside of 4.45 per cent. It has a one-year beta of 1.19, indicating high volatility on the counter.
The stock traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 75.06. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 68.88. It has a price-to-book (P/B) value of 8.36.
Meanwhile, Indian equity benchmarks recovered from intraday lows to finish near their record closing peaks, led by gains in financials, banks, technology, metals and automobile stocks.
Shares of Tata Motors on Tuesday touched their fresh 52-week high levels. The stock today rose 3.23 per cent to hit an intraday high of Rs 584 over its previous close of Rs 565.75. It eventually settled 3.10 per cent higher at Rs 583.30. Turnover on the counter stood at Rs 33.04 crore, commanding a market capitalisation (m-cap) of Rs 1,93,742.55 crore.
The counter has gained 47.75 on a year-to-date (YTD) basis on BSE and 46.71 per cent in the past one year.
On the earnings front, Tata Motors reported a consolidated net profit of Rs 5,408 crore in the fourth quarter that ended on March 31, 2023 (Q4 FY23). The homegrown auto major had posted a consolidated net loss of Rs 1,033 crore in the January-March quarter of 2021-22 fiscal (Q4 FY22). Total revenue from operations stood at Rs 1,05,932 crore in Q4 FY23 as against Rs 78.439 crore in the year-ago period.
Technical analysts largely remained mixed on the counter. One of them said that the stock may scale above Rs 600 mark in the near term; while the other analyst suggested booking profit at current levels.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has given a fresh pennant breakout above the Rs 580 zone with decent volume participation. It may climb further to hit a near term target of Rs 610 and thereafter Rs 660 levels in the coming days. The support would be strong near Rs 558 zone."
AR Ramachandran from Tips2trades said, "Tata Motors is overbought and looks bullish on the daily charts with next resistance at Rs 589. Investors should be booking profits at current levels and wait for a dip near Rs 508 to buy for better returns in the coming weeks."
That said, Nuvama Institutional Equities has a 'Buy' rating on the Tata Motors stock with a price target of Rs 645, suggesting a 14 per cent upside from hereon. This is despite a 43 per cent jump in Tata Motors shares year-to-date. The domestic brokerage said the uptrend across Jaguar Land Rover (JLR) and India business should drive a revenue growth of 15 per cent compounded annually over FY23–25.
Nuvama said its constructive view on the stock is driven by expectations of continuation of a cyclical upturn in JLR and domestic PVs/CVs and a healthy product pipeline and order book.
The scrip has an average target price of Rs 609.22, Trendlyne data showed, suggesting a potential upside of 4.45 per cent. It has a one-year beta of 1.19, indicating high volatility on the counter.
The stock traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 75.06. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 68.88. It has a price-to-book (P/B) value of 8.36.
Meanwhile, Indian equity benchmarks recovered from intraday lows to finish near their record closing peaks, led by gains in financials, banks, technology, metals and automobile stocks.