Tata Motors Share Price: The year 2024 proved to be very good for the stock market. Apart from the rise in the benchmark index, some large-cap shares also witnessed a good rise. Some large-cap stocks did not rise in the year 2024, which also includes Tata Motors Limited.
On Friday, Tata Motors shares closed at Rs 754.00 with a rise of 1.78 percent. The market cap of this company is Rs 2.76 lakh crore. Investors are expected to get huge returns in 2025.
Brokerage firm DAM Capital has upgraded its rating on Tata Motors from neutral to buy. The brokerage expects further improvement in the entire auto sector (by FY26) due to favorable macros.
The brokerage said Tata Motors offers a comfortable valuation given the sharp correction and favorable risk-reward ratio at the current price.
Shares of Tata Motors have fallen by more than 35 percent from the all-time high of Rs 1,179.05 touched on July 30, 2024.
DAM Capital said it expects the business of Jaguar Land Rover, a wholly owned subsidiary of Tata Motors, to grow at a CAGR of 6.5 per cent during FY 25-27.
tata motors share price target
The brokerage has given a buy rating on Tata Motors shares with a target price of Rs 870, which implies an upside of 16 per cent from Friday's closing price. The target price set by DAM Capital is still 26 percent less than the all-time high of Rs 1,179.05.
DAM Capital said the fair value of Tata Motors in a bearish scenario is estimated at Rs 675, which implies a decline of 9 per cent from the current market value. Tata Motors shares are expected to close on a weak note in 2024.
The stock has declined by 5 percent on year-on-year basis. Shares have increased by 90 percent in the last 2 years. In the last 5 years, this Tata share has given a bumper return of 326 percent to its investors.
Auto stocks worth buying in 2025
Apart from Tata Motors, DAM Capital in its latest report has also recommended buying Bajaj Auto and Escorts Kubota at the target of Rs 9,750 and Rs 3,550 respectively.
The brokerage said that Mahindra & Mahindra, TVS Motor and RK Forging remain its first choices from the auto sector.
DAM Capital said in the note that channel checks across sectors indicate that rural areas will see improvement, while the slowdown in urban areas is expected to continue in the near future.
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