Tata Motors hits fresh peak; stock has jumped over 60% in one year

Tata Motors share price: Shares of Tata Motors rallied as much as 3.82 per cent to hit an all-time high of Rs 699.45 apiece on the BSE on Tuesday, November 28. The stock has been hitting new highs almost every other day. The stock has been in focus given the buzz around the Tata Technologies IPO, which broke records in terms of subscription.

The Rs 3,034 crore IPO was oversubscribed 69.43 times as investors poured in Rs 1.57 lakh crore. The issue closed for subscription on Friday.

Last month, Tata Motors said it had inked a pact to sell a 9.9 per cent stake in Tata Technologies to TPG Rise Climate for Rs 1,613.7 crore. The company entered into share purchase agreements to sell a 9.9 per cent stake in Tata Technologies Ltd (TTL) for an aggregate consideration of Rs 1,613.7 crore, the Mumbai-based auto major said in a statement.

KR Choksey, in its report on Tata Motors dated November 18, said the following:

"Looking ahead, JLR production and wholesale volumes are expected to gradually increase in H2FY24E. The EBIT margin for FY24E is now expected to improve to around 8 per cent compared to the previous guidance of 6.0 per cent. JLR FCF (free cash flow) guidance for FY24E is maintained at over GBP 2 billion, with net debt reducing to less than GBP 1 billion.

TML-CV plans to continue delivering double-digit EBITDA margins backed by an improved mix, demand-pull strategy, and new business models like smart mobility solutions, digital offerings, and non-vehicular business.

Volumes and margins for TML-PV will improve in H2FY24E due to the new-generation product launches. The EV EBITDA margins will see further improvements in Q3FY24E and Q4FY24E due to the lowering of battery prices and new contracts coming into place, the brokerage said further. It has given a 'buy' call on the stock with a target price of Rs 784.

The stock has surged 61 per cent in the past 12 months. On Tuesday, shares of the auto major settled at Rs 698, up 3.61 per cent on the BSE.