Tata Motors shares hit record high today; can the rally continue in 2024?

Shares of Tata Motors Ltd hit a record high amid negative broader market sentiment on the last trading day of 2023 today. With today's rally, Tata Motors stock has recovered 110% from its 52-week low touched early this year. Tata Motors stock fell to a low of Rs 381 on January 6, 2023. It hit a record high of Rs 802.60 today, rising 6.41% intraday against the previous close of Rs 754.20 on BSE.

Earlier, Tata Motors stock opened higher at Rs 756.45 on Friday. Market cap of the firm rose to Rs 2.58 lakh crore. Total 33.94 lakh shares changed hands amounting to a high turnover of Rs 266.36 crore on BSE.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said," The stock after the clear breakout above Rs 735 has once again maintained the strong uptrend with next target visible at Rs 820 levels and thereafter with strength sustaining can achieve the Rs 880 zone. The near term support is at Rs 760 zone."

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Gaurav Bissa, Vice-President, InCred Equities said,"Tata Motors witnessed a 8-year breakout on the monthly charts around Rs 550-560 levels and has run up strongly since then. It has shown strong outperformance against its 4-wheeler peers. While the stock has potential to go higher, short term traders are advised to book profits. The long term targets are seen around Rs 900 levels where a cluster count target on point and figure charts is placed."

Abhijeet from Tips2trades said, "Tata Motors stock price is bullish but also overbought on the Daily charts with next resistance at Rs 838. Investors should book profits at current levels as a Daily close below support of Rs 760 could lead to Rs 695 in the near term."

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Tata Motors stock has a one-year beta of 0.2, indicating very low volatility during the period. In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 69.6, signaling it's trading neither in the overbought nor in the oversold zone. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages .The auto stock has surged 101% in a year and gained 96.87% in 2023.

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Tata Motors reported a net profit of Rs 3,764 crore in the last quarter against a loss of Rs 944.61 crore in the September 2022 quarter. Revenue climbed 32% to Rs 1.04 lakh crore in Q2 against Rs 78,846 crore in the corresponding period of the preceding fiscal. Operating margin in percentage terms rose to 13.19% in the last quarter against 7.67% in the September 2022 quarter.

EBITDA surged 86.4% to Rs 14,400 crore.  

Earnings per share rose to Rs 9.81 in the last quarter against (minus) Rs 2.47 in the September 2022 quarter. Debt to equity ratio fell to 2.23 in Q2 of this fiscal against 5.21 in the September 2022 quarter.  

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