Tata Motors turn investment experts bullish — some of them still unconvinced

The 7 percent rally in its stocks on Tuesday came after several brokerages maintained a bullish view

​The stock is up nearly 147 percent since September 30, 2020...

...and a majority spike in its shares came in January, this year

​What has led to a slew of upgrades from brokerages?

The auto major reported a 67 percent y-o-y growth in its Q3 profit for FY21, driven by robust volumes, improved product mix and cost-saving measures

​It also expects the domestic car industry to grow in double digits in the next fiscal...

...on the back of continued robust demand after a shift towards personal mobility

​Brokerage CLSA pegged a target price of ₹400, up 14 percent from the previous target

It has also raised FY22-23 earnings per share estimates by 4 percent

The CLSA buy rating is premised on expectations of a turnaround at JLR and India business

​ICICI Direct has set a target price of ₹350 — 7 percent upside at the current valuation

The upgrade came on the back of management intent on free cash flow generation and profitable growth ahead

​IIFL expects a turnaround in the passenger vehicle segment combined with an upcycle in sales volume

The brokerage has a buy rating with a target price of ₹330

​Motilal Oswal has also raised the target price for Tata Motors to ₹390 with a 'buy' rating

The upgradation from the brokerage came in hopes of the turnaround in the India business

​All this didn't convince Goldman Sachs

The brokerage reiterated a sell rating on Tata Motors with a target price of ₹175

​Goldman Sachs said…

The sharp surge in commodity prices would affect the profitability for both segments in the near term

​Macquarie has also maintained a neutral rating given structural concerns on JLR

The brokerage said a sharp increase in commodity prices would cause headwinds in the first half of FY22