Tata Motors shares give up Rs 900 mark after 9 months, oversold on charts; price targets for multibagger?

Shares of Tata Motors have given up the Rs 900 level after nine months. The Tata Group stock ended below the Rs 900 mark on February 2 this year. It stood at Rs 878.80 in that session. In the previous session, the  stock closed 1.70% lower at Rs 891.70. The stock ended in the red in the last five sessions. Market cap of the firm fell to Rs 3.28 lakh crore on Thursday. On BSE, 6 lakh shares changed hands amounting to a high turnover of Rs 54.03 crore in the previous session. 
 
The multibagger auto stock has climbed 36% in a year and risen 79% in three years. It has gained 125% in two years and risen 565% in five years. Tata Motors stock climbed 545.46% in the last five years. The stock has a one-year beta of 1, indicating very average volatility during the period.
 
Shares of Tata Motors hit a record high of Rs 1179.05 on July 30 this year and fell to their 52-week low of Rs 622 on October 10, 2023.

In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 28.1, signaling it's trading in the oversold zone. Tata Motors shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Laxmikant Shukla, Technical Research Analyst at YES Securities  said, " Tata Motors is currently consolidating within a downtrend between Rs 910 and Rs 890, indicating indecision. A break below this consolidation range could signal accelerated selling pressure. Prices are trading near the lower Bollinger Band, suggesting the trend remains negative. The current trend is sideways; a 'sell on rise' strategy is recommended with an entry around Rs 920 and a target of Rs 860 as long as Rs 950 holds on the upside."

Kotak Institutional Equities finds the Tata Motors stock Rs 1,050-worthy.

The brokerage has cut its FY2025-27 EPS estimates for Tata Motors (lower volume and margin estimates for all the three business segments).

Brokerage Sharekhan has assigned a price target of Rs 1,319 to the Tata Motors stock.

"Given JLR’s production constraint issue has already been guided and BMW’s guidance for EBIT margin cut in FY2025 was more of a company-specific issue, we maintain our BUY view on Tata Motors Limited (TML) with an unchanged price target of Rs 1,319 based on expectations of continued improvement in JLR, PV, and CV businesses as well as reduced net automotive debt," said Sharekhan.