Tata Motors Stock Price Can Rebound Above 200?

Once the leader of the pack Tata Motors, has witnessed a slow down due to various reasons. This had also resulted in collapse of stock price.

The company voluntarily recalled 44,000 cars in the UK as the models were emitting higher than certified levels of carbon dioxide, thus polluting the environment. The UK based luxury car maker has guaranteed that they will contact the owners of the vehicle and will arrange for the repairs.

If that’s not enough, the company’s dismal performance in the third quarter of the current fiscal year created a stigma for the buyer and Tata Motors share price crashed by 22.41% or 41 points as compared to the previous close of 172.90 on BSE. The stock cracked by almost 29% in the last 10 years to Rs 129 level.

Another reason for the stock decline was crash in Auto  Index. So, now the investors are worried about whether to stay invested in this stock and what are its growth prospects.

Tata Motors Stock price to revive in future?

Though the Tata Motors stock price had cracked in the last few months, but it is believed that it will rebound and will continue to yield returns. The statistics vouch for the same.

Tata Motors stock price had recently seen a jump of 10%. On BSE, the company’s shares touched as high as Rs 198. Such uptick in trend was there even after witnessing a decline in sales in February and weak sales.

The analysts have predicted a buy call on Tata Motors with a price target of Rs 240, after adjusting FY 2019 estimates and to account exceptional loss incurred, due to muted sales of JLR, the impact of Brexit and sluggish demand in the market of China.

Worth Investing?

The company has recently announced that it is soon going to whip the competition by launching hatchback cars and giving a stiff competition to Maruti and Hyundai.

TheAltroz will be arriving in the market by mid 2019. Cashing on the popularity of SUV’s in India, the company has recently registered 10,000 bookings for its premier SUV Harrier since its opening. The company’s recent foray into the premium SUV segment will enable to get a new set of buyers into the brand. The company car is based on versatile OMEGA architecture and comes with modest features.  The company also aims to construct the safest cars in India and has even showcased the premier cars in the automotive event in Geneva.

All these things, point toward the fact that Tata Motors is a fundamentally strong stock and will not be disrupted by temporary headwinds.