Stock price of Tata Motors saw an increase of 8%.Sell or Hold For Future !!
Tata Motors experienced an 8% surge in its stock price due to higher than anticipated wholesales for its subsidiary, Jaguar Land Rover (JLR), in the fourth quarter.
In the fourth quarter of FY23, the combined sales of Tata Motors commercial vehicles and the Tata Daewoo range totaled 118,321 units, indicating a 3% decrease compared to the same period in the previous fiscal year, FY22.
As per the company's statement, they anticipate a favorable free cash flow (FCF) of more than £800 million (equivalent to Rs 8,142 crore) for the fourth quarter (Q4FY23).
The target share price of Tata Motors is set at Rs 520 based on several factors such as the continuous improvement in JLR's sales volumes,
Hold with positive approach due to EBIT margin, and good visibility of free cash flow for FY24E. TATA Motors domestic operations show promising fundamental drivers for healthy growth.