No one must have missed out on the rally that the Tata motors stock has followed on the Sensex in the past 3 days and this is why this article is solely dedicated to the stock. Last Friday, the stock has reportedly taken the upswing by 7% after the results of its 3% growth in sales when compared with the past year’s records.
In the last 3 trading sessions, the stock has risen by more than 15% but some analysts still hold and remain on their viewpoint that such growth seen by the company’s stock is stiil not what they had anticipated.
The stock underwent a great selling pressure on the Sensex when there were rumors circulating about its falling sales figures for the passenger vehicles segment both in the domestic as well as the foreign markets. To top it all, the global slowdown had also reduced the pace of growth in the luxury car segment of the Jaguar & Land Rover units.
The other bad news that came about was the resignation of the company’s CEO, Carl Peter Forster and it had further dampened the market and trade volumes of the stock due to unhealthy sentiments flowing around.
Analysts are of the v iew that the markets have well factored the near term concerns about the company and do not see any significant fall in the stock prices in the coming times.
‘Bell the Bull’ says that it is a good time to take a buy decision on the stock because it values the stock to go up to Rs. 172 , which is an upside of 21% considering its EV / EBIDTA ratio.