Tata Motors share price to rise 28% - coronavirus, impact seen as temporary; big money-making opportunity, say experts

Tata Motors share price is expected to pick momentum as Jaguar Land Rover (JLR) sales are expected to grow from current 3 per cent to 5 per cent.

Tata Motors share price is expected to hit Rs 238 per stock levels in one year time horizon, say stock market experts. Photo: Reuters

Tata Motors share price has emerged as a big hope for investors going forward. Its shares have made a low of Rs 176.10 per stock levels while it made a high of Rs 200.35 per stock levels recently. According to stock market experts, Tata Motors shares are poised to give upside movement for a target price of Rs 195 to Rs 200 in the short-term and in the long-term the auto stock can go up to Rs 238 per stock levels. Share market experts are of the opinion that for long-term investors, this is a big money-making opportunity as it is oscillating around its one-month low, thereby creating an opportunity to make money for investors.

Highlighting the fundamentals of Jaguar Land Rover (JLR) that would fuel Tata Motors stock price, NL Raghunandhan, Research Analyst at Emkay Global said, "After turning negative in FY19 due to the weakness in major regions, JLR’s volume growth turned positive in Q2FY20 and Q3FY20, due to new products (new Defender and model changeovers of Evoque, Discovery Sport, XE, etc.) and growth in the China market. Although there are growing risks in China due to the outbreak of coronavirus, the negative impact is expected to be temporary. We expect FY21-22E growth to be aided by the launch of 16 nameplates, including two new models. While we still expect flat growth for FY20E, we forecast JLR’s volumes to improve and record 5 per cent growth during FY20-22E."

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Elaborating upon the strategy that a share market investor can adopt in regard to Tata Motors; Simi Bhaumik, a SEBI registered technical equity analyst said, "Tata Motors has strong support at Rs 175 levels and I would recommend buying Tata Motors shares at current market price for short-term immediate target of Rs 195 to Rs 200 per stock levels." Bhaumik said that once Tata Motors stocks break Rs 200 levels and sustain above Rs 210 per stock levels, then we can expect some further momentum in the Tata Motors counter.

On his suggestion to the share market investors in regard to Tata Motors shares NL Raghunandhan said, "In the long-term perspective, we are expecting Tata Motors share price to hit Rs 238 per stocks from current levels."

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