Tata Motors share price has strong support at Rs 280; it can show Rs 325 level, says expert
Tata Motors share price today is Rs 304, up Rs 2.2 or 0.7%. Tata Motors share price is up 4% in last week from Rs 288 to Rs 304. Sumeet Bagadia, Executive Director of Choice Broking says that on a daily chart, Tata Motors has confirmed a Hammer Candlestick by taking a support at its previous base which is placed at Rs 283 level and this suggests an upside movement in the counter
Tata Motors share price today is Rs 304, up Rs 2.2 or 0.7%. Tata Motors share price is up 4% in last week from Rs 288 to Rs 304. Sumeet Bagadia, Executive Director of Choice Broking says that on a daily chart, Tata Motors has confirmed a “Hammer Candlestick” by taking a support at its previous base which is placed at Rs 283 level and this suggests an upside movement in the counter. Moreover, Stock price has pulled back from lower Bollinger band and Horizontal line, which indicates bullish sentiments in the counter. Furthermore, the stock has given closing above 100-days Moving Averages as well as an oscillator stochastic, K% is trading above D% which points out strength in the counter. At Present Level stock is having support at Rs 280 while resistance comes at Rs 330, crossing above it can show Rs 325 levels.
Tata Motors Management indicated that:
a) Realizations improvement in JLR was aided due to shift of mix towards Land Rover (84% vis-a-vis 78% YoY), higher regional contribution of China and North America
b) Tata Motors cost-savings on VME and warranty is likely to sustain at less than 10% levels in India business, Tata Motors management expects to overcome commodity price pressures via pricing increases, product mix and structured cost reductions programs
c) Tata Motors BEV+PHEV contributed 30% sales in UK+EU for Q3; there is strong response to new Defender 110 as current orderbook remains more than 3-months of sales; launch of Defender 90 is expected to aid volumes further in FY22
d) Tata Motors capex for India business in FY21E likely to be at Rs 18.5 bn (higher then target of Rs 15 bn) due to accelerated demand in domestic PVs.
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ICICI Securities says that enhanced focus on FCF generation coupled with improving domestic business positioning, outlook is likely to aid investor confidence. ICICI Securities added that reporting separation of PV/CV business could aid value discovery.
As such, ICICI Securities has maintained target JLR multiple at 2.2x (rollover into FY23E) and it has reiterated a BUY rating on Tata Motors with a revised SoTP-based target price of Rs 325.
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