Home / Markets / Stock Markets /  Tata Motors shares: Prabhudas Lilladher sees upside in medium term

Sharing as top medium term stock pick based on the technical factors, the domestic brokerage and research firm Prabhudas Lilladher 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 out near the trendline support of the channel pattern on the daily chart near 390 zone and indicated a pullback with improvement in the bias," the brokerage house's note stated. 

“The chart looks attractive with the relative strength index (RSI) indicator also showing a trend reversal from the oversold zone and suggesting immense upside potential and expected to rise further in the coming days. We suggest to buy and accumulate the stock for an upside target of 450 keeping the stop loss of 388," Prabhudas Lilladher added.

Tata Motors reported that its total domestic sales increased by 44 per cent to 80,633 units in September. The Mumbai-based automaker had dispatched 55,988 units to its dealers in September 2021. The company has reported an 85 per cent increase in its total domestic passenger vehicle dispatches at 47,654 units last month, as compared to 25,730 units in the September last year.

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said that the company attained 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 new vistas and is poised to drive the mass adoption of EVs across the country. Going forward, we expect the festive season will witness strong retail on the back of improving the supply of vehicles," he added.

Tata leads India's EV market, helped by government subsidies and high tariffs on imports and the company intends to expand its electric PV portfolio from 3 EVs at present to 10 by FY26. Tiago EV is targeting existing EV customers who are looking for a smaller car with premium features.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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