Motilal Oswal Gives A Neutral View & Suggests A Buy On These 2 Reputed Stocks

Motilal Oswal sees a potential growth in the stock prices of Tata Motors and Westlife Foodworld. But the analyst of the stock broking firm has suggested buying shares of Tata Motors and given a neutral view on Westlife Food. Check the details here. In the brokerage coverage report, analyst has suggested that there is potential growth in stock price of Tata Motors by roughly 23%. The reason for such a growth is because the analsyt believes that the auto company has a strong order book of Jagauar Land Rover.Improving chip supplies globally, along with a very strong order book, should bode well for Jagauar Land Rover. This would be supplemented by a substantially favorable mix in favor of its three most profitable products (74% of order book), as well as a favorable mix and operating leverage benefit. In turn, improving supplies would further aid the release of working capital and enable substantial net debt reduction by FY25E (to < GBP 1 billion from GBP3.85 billion in Dec-22). A strong recovery in JLR, sustained resurgence of the India business, and a possible monetization of its stake in Tata Technologies (possible value of Rs 25-47/share for Tata Motors) are the key catalysts for the stock over next 12 months. Maintain Buy with target price of Rs 540 (Mar-25E based SOTP).Recently Tata Motors on Monday announced that it has signed a Memorandum of Understanding (MoU) with Uber to introduce around 25,000 XPRES-T Tata Motor Electric Vehicles (EVs) into their premium category service. Advertisement The last traded price is Rs 442.85 per share, it was up by 0.67% on intraday basis. The 52-week high and low is at Rs 502.75 per share and 366.05 per share respectively. Over last one year the share price declined by 10.48%, but over three years, it has rallied exponentially by 179.49%. According to the brokerage report the Quick service restaurant (QSR) company, Westlife Foodworld had unveiled its growth vision in December 2021 for CY27 (FY28) after successfully achieving its Vision 2022 as guided for in 2016 and 2017. Recently the management had organised a visit to the facilities of two of its key supply chain partners - Vista Foods and Radhakrishna Foodland. Both these centers have been associated with McDonalds in India and is important for companys growth plans, as it plans to add an unprecedented 50-60 stores annually.In terms of the Vision 2027 of the company, the brokerage report shared its views that Vision 2027 plans indicated the management confidence on the prospects of healthy growth, led by opportunity in the QSR space and its own efforts over the next few years. It was especially useful to understand the components that will drive growth over FY23-FY28.Therefore in terms of valuation, brokerage report states, We maintain our Neutral rating, given, fair valuations, scheduled increase in royalty rates to 2x from its current levels eventually, and limited incremental gross margin levers. Our valuation at 30x pre-Ind AS Sep24 EV/EBITDA leads to a price target of Rs 805 per share. The last traded price is Rs 666.35 per share, it was down by 1.59% on intraday basis. The 52-week high and low is at Rs 815.25 per share and 402.05 per share respectively. Over last one year the share price surged by 44.61%, and over three years, it has rallied by 40%. The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.