Share of Tata Motors has delivered 280 per cent returns in the last 12 months. The share stood at Rs 83.1 on May 26, 2020. It has zoomed to Rs 315.50 today, translating into gains of 280 per cent during the period. In comparison, Sensex clocked 67 per cent in one year.
Rs 5 lakh invested in Tata Motors share a year ago would have turned into Rs 18.98 lakh today.
The Tata Group stock has gained 71 per cent since the beginning of this year. It ended 0.06 per cent higher at Rs 315.50 against previous close of Rs 315.30 on BSE.
Tata Motors share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages. Market cap of the firm rose to Rs 1,04,755.71 crore.
Ace investor Rakesh Jhunjhunwala bought 4 crore shares of Tata Motors during the quarter ended September 2020. This was Jhunjhunwala's first direct investment into an auto firm after Autoline Industries where he and his wife Rekha held 6.20 per cent or 17.51 lakh shares of the firm for the quarter ended September 2020.
Recently, Big bull has reduced his stake in 12 portfolio stocks but he remained invested in Tata Motors with same 1.29 per cent stake.
HSBC Securities said, "The results were impacted by a write-off of GBP 1.48bn at JLR, related to a markdown of earlier project-related investments."
"The luxury OEM continues to report improved cash flows, with a positive FCF of GBP 729 million in 4Q; the net automotive debt stands reduced to INR 409 billion vs. INR 482 billion YoY. We are increasing our SOTP-based FY23 target price to Rs 380 to factor in the improved performance," it added.
"The company is also targeting tighter control over fixed costs in India, with operating leverage benefits set to mitigate some of the impact of commodity cost inflation over the medium term," ICICI Direct noted.
"Progress on deleveraging, margin & cash flow generation fronts is encouraging, with JLR EV transition under Reimagine a key monitorable. We maintain BUY, valuing TML at Rs 400 on SOTP basis (12x, 3x FY23E EV/EBITDA to standalone business & JLR, respectively," the brokerage firm added.
Motilal Oswal has a 'Buy' rating with a target price of Rs 400 per share. The brokerage house believes that volumes in India in 1QFY22 have been severely impacted by the lockdown as almost 80% of dealerships are shut.
"Near term headwinds notwithstanding, TTMT would see the triple benefit of macro recovery, company-specific volume/margin drivers, and sharp improvement in FCF and leverage in both JLR as well as the India business," it added.
The company reported a surprise loss of Rs 7,585 crore for the quarter ended March 2021. Total income in Q4 rose to Rs 89,319 crore against Rs 63,057 crore in the year-ago quarter.
For the entire 2020-21 fiscal, the company reported a consolidated net loss of Rs 13,395 crore against a net loss of Rs 11,975 crore in 2019-20. Total income stood at Rs 2,52,438 crore for the last financial year against Rs 2,64,041 crore in FY'20.
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