Tata Motors Ltd Share Price

 

Stock Analysis: Tata Motors Ltd Share Price for Short Term 2022

About Tata Motors Ltd Share Price:

Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 130,535.22 Crore) operating in Auto sector. Tata Motors Ltd. key Products/Revenue Segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Sale of services and Other Operating Revenue for the year ending 31-Mar-2022..

Overview:

1) Consumer Discritionery: Four Wheelers.

2) Large Cap: With a market cap of ₹1,40,188 cr, stock is ranked 33

3) Moderate Risk: Stock is 2.69x as volatile as Nifty

4) 52 week: High-536.70,Low- 268.45, & Current Price- 409.30

 

Fundamental Analysis:

Tata MotorsLtd.

For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 79,341.61 Crore, up 8.79 % from last quarter Total Income of Rs 72,931.86 Crore and down 11.17 % from last year same quarter Total Income of Rs 89,319.34 Crore. Company has reported net profit after tax of Rs -1,099.32 Crore in latest quarter.

Deliveries: Last trading day stock delivery percentage 19.95%

Overview:

1) P/E Ratio: -11.411

2) EPS- TTM : -34.46

3) PB Ratio:   2.67

4) Returns: 1 week -5.07%, 1 month -5.96%, 3 month -10.73% and 1 year 21.73%

5) Shareholding Pattern:  Promoters:46.4 Pledge 1.82

FII: 14.45

DII:  14.39Mutual Fund:  6.47

OTHERS:  24.76

 

What Is Fundamental Analysis?

Fundamental Analysis is the statistical method of performing fundamental analysis. It can help to learn the patterns in the historical data and applying it to the future. Essentially, it involves taking a look at the fundamental drivers of the stock and value of a stock. Using such methods, a very good analyst could make an astonishing return for his/her clients. However, there are several different methods of Fundamental Analysis depending on your personality and skill set. The common fundamental ways are Fundamental Indexing, fundamental Dividend Yield and Fundamental Discounted Cash Flow analysis. Fundamental Indexing When you buy a stock, you simply buy the whole company.

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Technical Analysis:

Moving average (on daily chart):

Tata Motors Ltd: Stock currently trading at Rs.398.85 which is below of 50, 100 and 200 days moving average.

Moving average crossover (on daily chart): 

Short term: 20 & 5 SMA crossover- bearish

Medium term: 20 & 50 SMA crossover- bearish

Long term: 50 & 200 SMA crossover- bearish

Indicators (on daily chart):

RSI (14): RSI is 59.01 i.e neutral

MACD (12,26,9): MACD recommendation is bearish

What is Technical Analysis and How Does it Work?

1. Introduction to Technical Analysis:

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term.

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term. One way to do this is through chart patterns on a stock’s price and volume. Chart patterns are formations that appear on a stock’s chart, which can signal when it will change direction.

There are many different types of chart patterns, but they all have one thing in common: They identify an entry point into a trade where an investor can make money by identifying when stocks will change direction.

2. Meaning of Charts and Patterns in Technical Analysis:

Technical analysis Charts is a way of forecasting the future value and movements of financial instruments or currencies by analysing statistics generated by price movements over time.

Technical analysis charts are trained to recognize patterns in the market that indicate what might happen next. It is a good idea to get acquainted with some basic patterns as they can serve as an indicator for future price movement.

Patterns like are Head and Shoulders, Flags, Pennants, Triangle, and Rectangle patterns will be discussed in this section.

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Strengths:

1)  The company has an efficient Cash Conversion Cycle of -35.22 days.

2)The company has a strong degree of Operating leverage, Average Operating leverage stands at 14.06.

 

Limitations:

1) The company has shown a poor profit growth of -168.02% for the Past 3 years.

2) The company has shown a poor revenue growth of -6.69% for the Past 3 years.

3) Company has a poor ROE of -19.42% over the past 3 years.

4) Company has a poor ROCE of -3.81% over the past 3 years.

5) Company has low Interest coverage ratio of 0.02.

 

Entry Point: Good time to consider, as stock is not in overbought zone.

Short term target: The short term target (2 months to 6 month) for Tata Motors Ltd.

Target 1: Rs.450 (one month)

Target 2: Rs.473 (2-3 months)

Target 3: Rs.532 (6 months)

 

Stop loss:

Stop Loss : Rs. 370

 

About The Post 

Through this article, I shared with you some information about Tata Motors Ltd. If you like this article then share with your friends so that they can plan trading or long term investment from today. Apart from this if you have any problem or suggestion or feedback, then email me. I will try to help you.

Disclaimer

Stock Analysis by R. Ansari

Source: ETmarkets, NSE, Tickertape & Ticker.finology.in