Tata Motors share price made a new 52 week high today of Rs 360.75, market cap of Tata Motors is near 1.2 lk cr. ICICI Securities highlights the detailed view technically and fundamentally which could benefit both traders and Investors. The auto index is seen breaking above its last five month’s consolidation signalling resumption of up move. Among large cap auto stocks we remain constructive on Tata Motors as it formed a higher base above the major support area of Rs 280 and is seen resuming its primary up trend, thus offering a fresh entry opportunity.

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ICICI Securities says that Tata Motors recently registered a breakout above the last four month’s consolidation range Rs 342 – Rs 279), thus opening upside towards Rs 405 levels as it is the measuring implication of the recent range breakout (342-279=63 points) added to the breakout area of Rs 342 signalling upside towards Rs 405.

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Tata Motors is leading the charge among domestic auto OEMs in the upcoming mega industry transformation of electrification. Domestically, its Nexon EV is the best selling electric PV having sold > 4,000 units, with market share pegged at 71% in FY21. Its overseas subsidiary Jaguar Land Rover (JLR) is set to embrace the global EV trend under the newly unveiled ‘Reimagine’ strategy with Jaguar set to be an all-electric brand by 2025 and Land Rover set to introduce six new electric models in the next five years. The adaptive transition would be aided by separate EV architectures for the two brands, with the company open to exploring partnerships within and outside the Tata ecosystem. It currently sells the award-winning all-electric I-Pace (3.6% of FY21 JLR product mix) and aims to have fully electric powertrain form 60% of total volumes by 2030, says ICICI Securities.

"Tata Motors is the market leader in the domestic CV space, commanding 42.3% market share as of FY21, with a presence across M&HCV as well as LCV segments. Domestic CV industry is on the cusp of an impending cyclical upturn following about two years of laggard performance with macro tailwinds (government’s infra push, expected pickup in economic activity) in place for a period of strong growth aided in part by low base. Tata Motors is also present in all segments of PVs domestically, where excellent customer response to its revamped product portfolio and new launches has led to sharp outperformance vis-à-vis industry in FY21, with Tata Motors recording 330 bps YoY increase in domestic market share to 8.3% leading to emergence as the third largest player. Premium and luxury car maker JLR that serves the China, UK, Europe, North America and other markets has continued to perform well post Covid led by rebound in Chinese geography and healthy offtake for the new Defender."