Tata Motors shares: Prabhudas Lilladher sees medium-term upside| Roadsleeper.com

Tata Motors shares: Prabhudas Lilladher sees medium-term upside| Roadsleeper.com

Domestic brokerage and research firm Prabhudas Lilladher, which is the medium-term top stock pick based on technicals, is bullish on Tata Motors shares and sees over 11% upside on the auto stock in the near term.

“Tata Motors share price after the decent correction witnessed has bottomed near the trendline support of the channel pattern on the daily chart near 390 zone and indicated a pullback with improvement in bias,” the brokerage’s note said.

“The chart looks attractive with the Relative Strength Index (RSI) indicator also showing a trend reversal from the oversold zone and suggesting a huge upside potential and expected to rise further in the coming days. We suggest buying and accumulating the stock for an upside target of 450 keep the stop loss off 388,” added Prabhudas Lilladher.

Tata Motors reported that its total domestic sales rose 44 percent to 80,633 units in September. The Mumbai-based automaker had shipped 55,988 units to its dealers in September 2021. The company has reported an 85 percent increase in its total domestic passenger vehicles at 47,654 units last month, compared to 25,730 units in September last year.

Tata Motors Passenger Vehicles CEO Shailesh Chandra said the company achieved its highest ever monthly sales of 47,654 units last month led by record sales of Nexon and Punch.

“With the recent launch of the Tiago EV, the company has opened up new vistas and is poised to drive the mass adoption of electric vehicles across the country. Going forward, we expect the Christmas season to witness strong retail sales on the back of improving the supply of electric vehicles,” he added.

Tata leads India’s EV market, aided by government subsidies and high import duties, and the company intends to expand its electric PV portfolio from 3 EVs currently to 10 by FY26. The Tiago EV is aimed at existing electric car customers looking for a smaller car with premium features.

The views and recommendations above are those of individual analysts or brokerage firms, and not of Mint.

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