Tata Motors share rises 2% after Edelweiss gives 'buy' call
BusinessToday.In November 26, 2020
Tata Motors share rose 2% today after brokerage Edelweiss gave a buy rating to the stock with a target price of Rs 197. Tata Motors stock touched an intraday high of Rs 174.9, rising 2.04% on BSE.
Tata Motors share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. During the last one year, the share has gained 6% but lost 6.13% since the beginning of this year.
Market cap of the firm rose to Rs 53,670 crore. In a month, the share has gained 30%.
Later, the share gained 1.37% to close at Rs 173.75.
The brokerage maintains 'BUY/SO' with an SoTP-based target price of Rs 197, valuing the India business at 10.5x EV/EBITDA and JLR at 6.5x EV/EBIT.
Brokerage CLSA has given a higher target price of Rs 220 per share on the Tata Group stock. According to a media report, CLSA has cited a good start to the third quarter with volume recovery in JLR continuing, driven by China and US. JLR's overall estimated retail sales moderated to 4 percent YoY in October. Volume recovery on a QoQ basis coupled with cost cuts should drive deleveraging for the company. Risks include a sudden slowdown in its recovery trajectory and no-deal Brexit, the research firm added.
Motilal Oswal said the company will avail the triple benefit of a) macro recovery, b) company-specific volume/margin drivers and c) a sharp improvement in FCF and leverage in both JLR as well as India business.
Meanwhile, after a volatile trading session on November series expiry day, Sensex ended 431 points higher at 44,259 and Nifty gained 128 points to 12,987.