At this time the share of Tata Motors was trading at Rs 290 level. ICICI Securities has estimated this stock to cross 500. Motilal Oswal has estimated it to reach Rs 400.
It has been estimated to reach beyond 500.
Tata Motors has announced the result for the June quarter of the current financial year. On an annual basis, the company’s net loss almost halved to 4450 crores, while revenue doubled to 66406 crores. In June 2020, the company’s total loss was 8444 crores, while the revenue was 31983 crores.
This is the second consecutive quarter when the company has suffered a loss. After the results, the company’s shares are also under pressure. At 2.35 pm, its stock was trading at a level of Rs 290 with a fall of about 1 per cent. Here a big question arises in the mind of investors whether Tata Motors stock should be bought at this level? Investors who are already in it want to know whether to hold or exit, as well as what is the outlook for this stock.
Target price of Rs 400
According to a report published in Mint, analysts of Motilal Oswal say that the company faced chip shorts in the JLR unit in the first quarter. Apart from this, the effect of local lockdown was also visible. In the coming days, good recovery is expected in the company’s India business and JLR business. Analysts of Motilal have given buy advice in this stock and its target price has been fixed at Rs 400.
Target price of Rs 513
ICICI Securities says that the company’s performance in the June quarter was as expected. Consolidated EBITDA margin stood at 7.9 per cent. It believes that in the coming days, the company will benefit a lot due to the increase in demand in the consumer vehicle segment. It has kept the target price of this stock at Rs 513. ICICI Securities says that the company is also moving fast in the direction of electric vehicles. Infra is being prepared with the help of Tata Power. The company will benefit greatly from these aspects.
Target price of Rs 370
Another brokerage firm Phillip Capital has also given a buy advice for this stock. He has kept the target price at Rs 370. It said that in the short term the impact of the semiconductor shortfall would be visible, but in the long term it would have positive consequences.
JLR segment performed well
Looking at the results of the June quarter, the company’s British unit Jaguar Land Rover (JLR) earned 5 billion pounds in the first quarter of the current financial year, which is 73.7 percent higher than the same quarter of 2020-21 a year ago. JLR suffered a loss of £11 million before tax. On a standalone basis, Tata Motors reported a net loss of Rs 1,330.74 crore in the quarter under review. A year ago, in the first quarter of 2020-21, the company had a loss of Rs 2,190.64 crore on a standalone basis. The company’s operating income on a standalone basis stood at Rs 11,904.19 crore for the quarter ended June, 2021 as against Rs 2,686.87 crore in the corresponding quarter of 2020-21 a year ago.
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