Tata Motors shares jump 4% to hit fresh one-year high; analysts see more upside

Shares of Tata Motors Ltd continued their upward move for the fifth straight session in Wednesday's trade. The stock rose 4.35 per cent to scale its fresh one-year high level of Rs 896.65. At this price, the multibagger scrip has surged 123.93 per cent from its 52-week low price of Rs 400.40, a level seen on March 28 last year.

Technical analysts largely suggested that the counter has potential to see further higher levels. "One can hold this stock with a stop loss placed at Rs 830. On the higher side, Tata Motors is likely to test Rs 900-920 levels," Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets, told Business Today TV.

Gaurang Shah, Senior VP at Geojit Financial, also remained positive on the counter. "The stock may see Rs 1,000 level on a long-term basis. We are going to see some new product launches from the automaker going further. In addition, JLR (Jaguar Land Rover) business has started to support the growth story," Shah stated.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 78.39. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 64.78 against a price-to-book (P/B) value of 12.34.

The stock saw heavy trading volumes today as around 14.51 lakh shares changed hands on BSE. The figure was way higher than the two-week average volume of 6.39 lakh shares. Turnover on the counter came at Rs 127.98 crore, commanding a market capitalisation (m-cap) of Rs 2,93,806.14 crore.

As of December 2023, promoters held 46.37 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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