Rakesh Jhunjhunwala holds this Undervalued TATA Group stock! Generates 144% returns!
NSE: TATAMOTORS hits all time high on the 5th of February reaching a peak price of ₹950 in intraday. In a very short time of 2 months, shares of Tata Motors have already gained by over 36%
Tata Motors has outperformed the major index Nifty 50 in terms of returns. Its share price rose from ₹392 in 2023 to ₹950 in 2024 gaining nearly 145%. With a market cap of 3,07,031 Cr, Tata Motors is another giant from the Tata group.
Tata Motors is yet another share from the respected Tata Group that is reaching new highs. There are multiple reasons that can be attributed to this steady growth in shares of Tata Motors. Let us now check if this bullish move in the company shall continue.
What's driving shares of NSE:TATAMOTORS to rise?
There are multiple factors that contribute to the growth of TATAMOTORS. The company has shown improved return on equity over the last few quarters. This indicates that the company is generating more profits from its shareholders’ investments. A higher return on equity generally leads to a rise in share price.
The company’s net profit has been growing steadily on a quarter-on-quarter basis over the past year. Tata Motors has registered high growth in quarterly sales numbers recently which is evident from their annual report. Strong growth in sales is a healthy sign for any company and leads to higher investor confidence and share price appreciation.
The sales growth ratio of Tata Motors has been high, meaning the company has been able to rapidly grow its sales over time. Fast sales growth indicates strong demand for the company’s products.
Foreign institutional investors’ holding in Tata Motors has been increasing. When large investors raise their stake in a company, it is a sign of their confidence for retail investors too.
Institutional investors’ holding has also been rising steadily. Increased institutional holdings signal strong fundamentals and prospects, leading to share price growth.
Will the rise of TATAMOTORS continue?
Tata Motors is trading at a moderate price-to-earnings ratio between 10 to 20. The current P/E is at 15.67 which is lower than its 1 year median P/E of 19.99.
This shows the stock may be reasonably valued right now. Stocks with moderate P/E ratios often see share price rises.
Tata Motors has consistently paid dividends to its shareholders. Dividend payouts make a stock more attractive to investors.
If the strong management of Tata group continues to perform better, the rise of TATAMOTORS shall continue for days to come.
Important support levels for TATA MOTORS
| Support Level for TATA MOTORS | Price |
|---|---|
| Support 1 | ₹875 |
| Support 2 | ₹805 |
| Support 3 | ₹735 |
TATA MOTORS Dividend history
| Ex Date | Record Date | Dividend % | Amount (Rs.) | Type |
|---|---|---|---|---|
| 28 Jul 2023 | 29 Jul 2023 | 100 | 2 | Final |
| 18 Jul 2016 | 20 Jul 2016 | 10 | 0.2 | Final |
TATAMOTORS share holding pattern
| Category | Percentage |
|---|---|
| Promoter | 46.37% |
| FII (Foreign Institutional Investor) | 18.62% |
| Public | 17.6% |
| DII (Domestic Institutional Investor) | 17.4% |
Final Words
Legenary investors like Rakesh Jhunjhunwala holds a fair amount of shares of Tata Motors. The company have perfomed quite well in past which is evident from appriciation in its stock price.
As investors it is important for us to regularly check the financials of the company along with its technical chart. For long term investor do check TATA MOTOR’s Long term target forecast upro 2030.
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