Thursday witnessed Tata Motors‘ share prices skyrocketing during the morning session where prices went up over 5% while setting a new all-time high of Rs 1,081.70.
How Did This Happen?
On 25 July, there was a massive price surge which came as Nomura upgraded the automobile maker to “buy” from “neutral”, raising its target price to ₹1,294 from ₹1,141.
With this surge, the Tata Group company’s market capitalisation pushed close to the Rs 4 lakh crore mark.
The Tata Motors’ market cap stands at Rs 3.97 lakh crore at the time of writing this article.
This latest change in dynamics with Tata Motors has once again became the India’s biggest automobile company in terms of market cap taking over the title from Maruti Suzuki.
In case of Maruti Suzuki’s share, its market cap currently hovers around ₹3.92 lakh crore.
It appears that the company had taken over Suzuki’s market cap for a brief period earlier this year.
As we have witnessed, the shares of the company have seen a strong rally in the past year.
It is to the extent that the stock has gone up over 13% that too in just the last 30 days.
Soon, the auto giant will be reporting its earnings for the first quarter which is scheduled to be reported on August 1.
What’s Your Take?
When it comes to the analysts, they have mixed views on Tata Motors’ upcoming results.
Tata Motors’ performance will lag behind its peers, anticipated by Motilal Oswal, in its preview note on the auto sector.
The Indian financial service provider expects the company
to report revenue of around Rs 1.03 lakh crore and a profit after tax of around Rs 4,000 crore.
They have given a “neutral” rating on the stock with a target price of Rs 960.
Contrary to this, Kotak Securities has a more optimistic outlook, projecting revenue of Rs 1.18 lakh crore and a net profit of Rs 6,018 crore for Tata Motors.
The firm maintains an “add” rating on the stock with a target price of Rs 1,100.
