This Tata Stock Is Top Idea Pick From KR Choksey, Buy For 34% Return
Tata Motors Ltd is a large-cap Tata Group stock that operates in the Auto sector.It has a market capitalisation of Rs 1,42,151 crore.
Tata Motors last traded at Rs 428 apiece, up 1.80% from the previous close of Rs 420.45 apiece.
The stock recorded its 52 week low on 12 May 2022 at Rs 366.20 apiece and 52 week high on 17 August 2022 at Rs 494.40 apiece, respectively.
The stock has fallen 3.89% in 1 month, and 1.68% in the past 3 years.
Returns to consolidated profitability, performance expected to improve
KR Choksey expect the company will grow at a CAGR of 15.7%/ 29.1% in revenues/EBITDA over FY22 - 25E.
We value the company on a SOTP basis.
We value the JLR & Chery-JLR JV businesses at 2.5x EV/EBITDA, TML-CV at 13.0x EV/EBITDA, and TML-PV business at 14.8x EV/EBITDA and arrive at a target price of INR 572 per share (unchanged), implying an upside of 36.0%.
Tata Motors (TTMT) is a leading global automobile manufacturing company.
Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles.
Besides operating in the Passenger vehicles (PV) and Commercial vehicles (CV) segments in the domestic Indian market, TTMT has a strong global network of subsidiaries and associate companies, including Jaguar Land Rover in the UK.
The stock has been picked from the brokerage report of KR Choksey.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns