Tata Motors (TATAMOTORS) shares hit a record high yesterday when they gained 5.51%, closing at Rs 1,084.30 on Thursday, July 25, 2024. The automotive giant’s stock has been on an amazing run, delivering a 32.17% return so far this year and a sensational 61.21% in the past 12 months.
In trading, Tata Motors shares hit Rs 1,087.50 during the day–exceeding its earlier 52-week high of Rs 1,062.32. This rally has followed the positive sentiment surrounding the company’s performance and its popular analyst rankings.
Analyst Outlook Remains Positive
Of the 30 professional observers following the company’s performance, 20 have called for making their stock entreaties anything but a “Sell”, and the demand is certainly for strong growth assignments based on such numbers as these. Only four observers recommend that you sell off your shares in Tata Motors. There are also six who “advise a ‘Hold’.
These bullish indications are strengthened further by the latest upgrading of Tata Motors by Nomura to a “Buy” ranking, which helped propel the stock skyward yesterday.
Financial Performance and Valuation
In the last quarter, Tata Motors netted Rs 17,407.18 crores, a strong showing indicating the company’s current financial health. If we compare it to et stock prices, the stock’s current twelve-month trailing price-to-earnings (P/E) ratio of 9.08 is lower than the auto sector’s P/E of 22.76, suggesting it could be undervalued.
With a market capitalization of Rs 377,379.70 crores, Tata Motors is still one of the largest players in the Indian automotive sector today. The company’s diversified portfolio including commercial vehicles, passenger vehicles, and the Jaguar Land Rover brand has helped keep them in a commanding position on both domestic and international markets.
Shareholding Pattern and Institutional Interest
On June 30, 2024, promoters held 46.36% of Tata Motors’ shares while the remaining 53.64% were owned by public shareholders. Institutional investors have maintained their stake in the stock, with mutual funds holding 5.16% of it and foreign institutional investors (FIIs) possessing 18.18% of the company’s total equity.
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Future Outlook
Analysts still have hopes for Tata Motors in the future, as consensus estimates see eps (earnings per share) at Rs 65 for FY25 and 77 in FY26. They’re going to rise to 92 in FY27 with a focus on vehicles that use less energy tailored to new environments: electrically powered models for example Jaguar and Land Rover models which is a rising trend worldwide. The company’s strong technology pipeline, innovation performance, and rising jackal fortune with Land driving them are seen as key growth drivers.
As Tata Motors continues to navigate the fluid automotive landscape, investors and experts will be watching closely for how the company fares in the coming quarters. With the stock enjoying new all-time highs today and strong recommendations from analysts who see an accentuated forecast ahead now is this always exciting investment something for you too? This is Tata Motors to gain up.