Tata Motors Share Price Rockets to Rs. 1,075—What’s Fueling This Unstoppable Growth?
Tata Motors, the renowned Indian automotive giant, has been making headlines with its impressive share price performance. As of August 21, 2024, the stock has reached new milestones, leaving investors and analysts eager to see what the future holds.
According to the latest data, Tata Motors’ share price has been on a steady upward trajectory, closing at Rs. 1,075.25 on August 21, 2024. This represents a significant increase from its previous close of Rs. 1,068.10, indicating a strong market sentiment.
Key Factors Driving Tata Motors’ Share Price
- Robust Financial Performance: Tata Motors has been delivering impressive financial results, with a CAGR of 15.07% and a ROE of 36.97% in the year ending March 31, 2024. This outperformance has caught the attention of investors and analysts alike.
- Jaguar Land Rover’s Improved Execution: Nomura, a leading Japanese brokerage firm, has upgraded Tata Motors from ‘Neutral’ to ‘Buy’ and set a price target of Rs. 1,294 per share. This upgrade is primarily due to expectations of significant upsides from Jaguar Land Rover’s (JLR) improved execution.
- Proposed Demerger: Tata Motors’ proposed demerger plan to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses is seen as a positive move that could unlock value for the CV segment.
Analysts’ Predictions and Targets
Analysts are bullish on Tata Motors’ future prospects. Nomura’s revised price target of Rs. 1,294 per share implies a potential upside of 26% from the stock’s closing levels on August 20, 2024. This target is the highest on the street, reflecting the brokerage’s confidence in the company’s growth potential.
Technical analysts also remain positive on the counter for the short term. Kiran Jani, Head of Technical Research at Jainam Broking, suggests that investors can consider buying Tata Motors at current levels for an upside target of Rs. 1,150, with a strict stop loss placed at Rs. 1,040.Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, believes that Tata Motors shares have the potential to hit an upside target of Rs. 1,180 in the near term. He advises keeping a stop loss placed at Rs. 1,070 for this trade.
52-Week High and Low
Tata Motors’ 52-week high stands at Rs. 1,179.00, while the 52-week low is Rs. 593.30. The stock’s current price of Rs. 1,075.25 is closer to its 52-week high, indicating strong momentum and investor confidence.
