Tata Motors PV Share Price (TMPV): Kunal Parar, Vice President of Technical Research and Algo at Choice Equity Broking, believes that Tata Motors’ passenger
vehicle (PV) business is showing clear signs of recovery and strength. According to him, the stock has formed a strong bottom around the Rs 340 level. Speaking to ET NOW Swadesh, Parar said that momentum in the stock has improved significantly over the past few sessions and indicating renewed buying interest. This upward move suggests that market sentiment around the stock is turning positive. He said that the strong response to Tata Motors PV's Sierra is among other factors that are working in favour of the stock. On the very first day, the Sierra received more than 70,000 bookings, setting a new benchmark and highlights strong demand for its new product lineup. In addition to strong bookings, Tata Motors has announced an aggressive plans for its electric vehicle (EV) business, aimed at retaining a dominant market share of 45-50 per cent in the country's growing electric vehicle segment. The company has plans to invest between Rs 16,000 to Rs 18,000 crore in its EV operations by FY30. This investment will be used for new product development as well as expansion of charging infrastructure across the country. The company aims to scale up its charging network to over 10 lakh charging points. Separately, the automaker has announced that it will launch five new electric vehicle models in the coming years. This includes its premium EV brand, Avinya. Parar said that these developments are creating a strong positive outlook for Tata Motors. He said that the recent launch of the Harrier petrol SUV has further improved expectations and "with multiple new products across both electric and petrol segments, the overall outlook appears very encouraging for the company". He said that the fundamentals will improve further for company as he advised investors to hold Tata Motors PV shares. He said that exiting the stock for small returns may not be the right strategy at this stage because the counter has room to move higher. "I would advise to HOLD Tata Motors PV shares in your portfolio. It is not advisable to exit positions with small returns," he said. "My first target for Tata Motors PV shares is Rs 420. Once the stock goes past Rs 420-mark and hold, we can very soon see the levels of Rs 450," the analyst added. Tata Motors shares closed at Rs 359.30 on the BSE on Wednesday, down 1.05 per cent. The target of Rs 450 implies an upside of Rs 90 or 25 per cent from Wednesday's closing price. VIDEO
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
