Tata Motors (Rising EV star)
Tata Motors Limited, a USD 34 billion company, is a leading global automaker with a diverse product line that includes cars, SUVs, buses, trucks, pickup trucks, and defence vehicles.
Why Tata Motors shares can perform well in future?
-> Tata Motors' consolidated EBITDA margin of 14.6 per cent (+210bps QoQ) was a pleasant surprise, owing to cost management.
-> PV(Personal Vehicles) will most likely gain market share due to a revamped portfolio, customer preference for SUVs, and rising EV penetration.
-> CV volumes will continue to benefit from the cyclical upturn, improving fleet utilization and freight rates.
-> JLR's resurgence and robust order book will benefit and drive Future Cash Flow generation.
-> JLR's profitability will improve as a result of the improved mix, cost-cutting, and operating leverage.
Technical Analysis:
-> Formed W pattern(double bottom) on daily as well as weekly charts.
-> The price tested a major support level that had previously been a major resistance level and recovered nicely from there.
-> The price is currently hovering around the 200 day EMA; any decisive break of that will result in an uptrend in the share price.
Entry: Closing above 420(15 mins closing)
Target 1: 461.5 (Time Frame: 20-30 days)
Target 2: 500 (Time Frame: 5-6 months)
Disclaimer: The information given above is only for educational purposes. Please consult your financial advisor before taking any investment decision.
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