Tata Motors Stock: Tata Motors has delivered better-than-expected results in the second quarter. The company incurred a loss of Rs 314 crore in the second quarter, while experts were expecting a loss of over Rs 400 crore. The company’s revenue has also increased to Rs 53000 crore as expected. It is special that JLR has done well in the second meeting and JLR has improved China sales. Currently, after the second quarter results of Tata Motors, experts and brokerage houses are looking very positive about the stock. According to the report of different brokerage houses, Tata Motors can give up to 70 per cent returns. Let us know that recently, veteran investor Rakesh Jhunjhunwala bought 4 crore shares of the company.
How was the domestic business
Talking about domestic business, Tata Motors’ passenger vehicle segment has seen almost 100 percent growth. However, the commercial segment also saw weakness in this quarter. However, the management hopes that there will be good growth in the commercial vehicle segment in the future. Talking about the second quarter, good growth in passenger vehicle has increased the company’s profitability. Further, due to festive demand, the company may offer positive results in the third quarter. Due to the good monsoon, the crop has been good, so there can be good demand in rural areas.
Can get up to 70 percent return
Brokerage House Motilal Oswal Says that Tata Motors is seeing benefits in three ways. It will get the benefit of better macro recovery. JLR and India business will benefit from improvement. At the same time, profits will increase due to increase in volume. However, some pressure cannot be ruled out in the near term. The second wave of Covid 19 in the UK will have some effect. But overall sentiments are looking better. The valuation of the stock is better, the right time to invest.
Brokerage house is neither advised to invest in stocks with a target of Rs 230. The stock closed at Rs 135 on Tuesday. In this context, the stock can get 70 percent return.
Brokerage House CLSA Apart from India Business, there are good signs for the improvement company in JLR. The company has performed better than expected in the second quarter. In recent days, we have reduced our expenses, which will benefit you further. The brokerage has also suggested investment in Tata Motors. The brokerage house has advised investing in the stock with a target of Rs 220. In terms of current price of 135 rupees, it can get 63 percent return. Brokerage House Citi Given the upside of 37 per cent in the stock, it has suggested an investment with a target of Rs 185.
Rakesh Jhunjhunwala also likes this share
Jhunjhunwala has bought 40 million shares of Tata Motors and has joined the company’s major shareholders. He had a 1.29 per cent stake in the company at the end of September. He also holds a good stake in other Tata group companies. Tata Motors is a Tata group company. At the current price of Rs 135, he has the total value of Tata Motors shares around 515 crore.
(Note: We have given advice here based on the company’s second-quarter results and brokerage house report. There are risks in the stock market, so get the opinion of experts before investing.)
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