The year 2021 has delivered a huge number of multibagger stocks. Shares of Tata Motors Limited have more than doubled investors' money so far in 2021. In comparison, the Nifty 50 index gained over 27 per cent and the S&P BSE Sensex index rose over 25 per cent.
This multibagger stock has surged from the Rs 184-mark to touch Rs 380.55. It has gained 107 per cent since the beginning of this year and has risen 168 per cent in the last one year.
The stock rose 13 per cent to hit a new 52-week high of Rs 380.55 on the Bombay Stock Exchange (BSE). It ended 12.68 per cent higher at Rs 378.60 against the previous close of Rs 336.
With a market capitalisation of more than Rs 1,25,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
India's ace investor and Dalal Street veteran Rakesh Jhunjhunwala revealed that Tata Motors has been his largest investment in the past 15 months, adding that he has made two investments in new-age digital businesses, including gaming and the sports media platform, Nazara Technologies.
Speaking exclusively with Business Today TV's Udayan Mukherjee, the billionaire market maven said that Tata Motors' foray into the electric vehicles segment will boost the stock going ahead.
"One of the largest investments in my life is in Tata Motors, which I have done in the last 15 months," said Jhunjhunwala. As per the shareholding pattern in April to June 2021 quarter, Jhunjhunwala owns 1.14 per cent stake in Tata Motors.
"With improving volume demand domestically and on international front backed by cost optimisation and cash saving initiative, we expect the company will grow at CAGR [compound annual growth rate] of 13.4 to 10.9 per cent in topline/EBITDA over FY21/23E," said KR Choksey in a research report.
"We maintain our FY23E EPS of Rs 18, and we apply a P/E multiple of 22x (earlier 20x) on FY23E EPS to arrive at a revised target price of Rs 394 (earlier Rs 357) per share, implying upside potential of 14.2%. Accordingly, we recommend an "ACCUMULATE" rating on the shares of Tata Motors," it said.
According to MarketsMojo, the technical trend has improved from Mildly Bullish on October 1, 2021, and has generated 13.29% returns since then. The stock is technically in a bullish range and multiple factors for the stock are bullish like RSI, MACD, Bollinger Band, and KST.
The stock is trading at a discount compared to its average historical valuations and with a ROCE of 7.9, it has a Fair valuation with a 1.5 Enterprise value to Capital Employed.
Earlier this month, the company announced that its total sales in domestic and international markets for the July-September quarter of this fiscal stood at 1,71,270 units compared to 1,10,345 units in the same quarter of the previous fiscal year.
Domestic sales for the July-September quarter of FY22 stood at 1,62,159 units compared to 1,06,854 units in Q2 of FY21, growing at 52 per cent year-on-year.
The auto major sold 55,988 units in September 2021 domestically, compared to 44,410 units in the same month last year, registering a growth of 26 per cent.
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