Tata Motors Share Price Surges to Fresh 52-Week High on July 26, 2024
Tata Motors, one of India’s leading automobile companies, has seen its share price surge to a fresh 52-week high on July 26, 2024. The stock price rose by 1.74% to hit a new high of Rs 1,110, marking a significant milestone in the company’s performance. This increase follows a series of positive trends and investor confidence in the company’s long-term prospects.
Main Points
Key Highlights
- Share Price: The share price of Tata Motors rose to Rs 1,110, a 1.74% increase from the previous day’s close.
- 52-Week High: This marks a new high for the stock, surpassing the previous high of Rs 1,065.60.
- Market Capitalization: The company’s market capitalization stands at Rs 3,67,075.55 crore.
- Trading Volume: The trading volume on the BSE was around 8.67 lakh shares, higher than the two-week average volume of 5.13 lakh shares.
- Dividend: Tata Motors is scheduled to announce its June 2024 quarter (Q1 FY25) results on August 1, 2024.
- Nomura’s Rating: International brokerage firm Nomura has revised its rating for Tata Motors to ‘Buy’ from ‘Neutral’, with a target price of Rs 1,294.
- Technical Analysis: Technical analysts are positive about the stock, suggesting buying opportunities with an upside target of Rs 1,150 and a stop loss at Rs 1,040.
Market Sentiment
The market sentiment towards Tata Motors has been overwhelmingly positive. The stock has been trading higher than its 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs). The 14-day relative strength index (RSI) stands at 72.96, indicating that the stock is currently overbought. However, this does not detract from the overall bullish trend.
Financial Performance
Tata Motors has delivered impressive financial results in recent years. The company’s return on equity (ROE) stands at 26.22%, and its earnings per share (EPS) is 23.77. The price-to-equity (P/E) ratio is 45.89, and the price-to-book (P/B) value is 12.03. These figures reflect the company’s strong financial health and investor confidence.
Recent Developments
The company’s commercial vehicle business is expected to benefit from the proposed demerger, which will unlock value for the business. Additionally, the strong performance of Jaguar Land Rover (JLR) under Tata Motors’ ownership is seen as a significant upside for the stock. The demerger and JLR’s execution are expected to lead to significant value creation for the company.
Analyst Recommendations
Analysts are optimistic about the stock’s potential. Kiran Jani, Head of Technical Research at Jainam Broking, suggests buying the stock at current levels for an upside target of Rs 1,150 with a stop loss at Rs 1,040. Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, recommends a target of Rs 1,180 with a stop loss at Rs 1,070.
