As of January 2, 2025, Tata Motors shares are trading at approximately ₹766.70, reflecting a 2.33% increase during the current session. This rise marks the third consecutive day of gains for the stock, which has rebounded 6.26% from its 52-week low of ₹718, reached on December 23, 2024.
Financial Overview
Tata Motors has reported a 1% year-on-year increase in its December 2024 sales figures, with total sales reaching 76,599 units compared to 76,138 units in December 2023. The company’s domestic and international sales for Q3FY25 stood at 235,599 vehicles, showing slight growth from the previous year. Despite these positive sales figures, Tata Motors shares have experienced a decline of approximately 2.56% over the past year.
Recent News
The recent uptrend in Tata Motors shares can be attributed to strong sales performance and an overall positive sentiment in the stock market. Brokerages have expressed bullish outlooks on the stock, with various analysts providing optimistic price targets based on anticipated growth in the company’s Jaguar Land Rover (JLR) segment and other vehicle categories.
Pros & Cons
Pros:
- Positive sales growth in December 2024.
- Strong brokerage support with bullish price targets.
- Potential recovery from recent lows, indicating a positive market sentiment.
Cons:
- The stock has delivered negative returns over the past year.
- Ongoing volatility with a one-year beta of 1.1, indicating higher fluctuations compared to the market.
- Concerns regarding global market slowdowns that could impact future performance.
Recommendation on Buy or Sell
Given the current market conditions and analyst recommendations, it is advisable for investors to consider holding onto their shares or buying at current levels. The general consensus among brokerages is optimistic, with many maintaining ‘buy’ ratings based on expected improvements in JLR and overall vehicle sales.
Others’ Recommendations
- Nomura India has set a price target of ₹990 for Tata Motors.
- DAM Capital maintains a ‘buy’ rating with a target price of ₹870, projecting a 6.5% CAGR for JLR volumes from FY2025 to FY2027.
- Sharekhan has revised its target price to ₹1,099, citing expectations of continued improvement across various segments.
- LKP Securities refers to Tata Motors as a ‘value buy’ with a target price of ₹970, noting potential demand increases in commercial vehicles.
Conclusion
Tata Motors appears to be on an upward trajectory following recent sales growth and positive market sentiment. With strong support from brokerages and optimistic projections for future performance, investors may find it beneficial to maintain their positions or consider entering at current levels. However, potential investors should remain cautious due to inherent market volatility and global economic factors that could influence stock performance.
Disclaimer: The information provided in this article is based on recent updates regarding Tata Motors’ stock performance and market analysis. Investors are encouraged to conduct their own research or consult with financial advisors before making investment decisions.
