Tale of the Tape 

Hola Amigos. Happy Friday!

Nifty (-0.8%) and Sensex (-0.9%) saw profit booking after yesterday’s massive jump! Midcaps (-0.3%) and Smallcaps (-0.2%) also saw muted cuts. The advance-decline ratio was in favour of the bears (3:2).

It was a mixed bag for sectors. Oil & Gas (+1.3%) saw the most buying, followed by PSU Banks (+0.3%). Meanwhile, IT (-1.4%)  and Pharma (-1.2%) witnessed heavy selling pressure.

Is Tata Motors a value buy? Read our top story on whether you should buy the dip.

Standard Glass Lining IPO kicks off next week. Check out our analysis below to help you decide whether to subscribe.

Retail stocks were on a roll today, all juiced up on Dmart’s solid Q3 update. Check out their charts below to find out more.

ONGC (+5%) was the top Nifty gainer after Jefferies said it sees a +45% upside from current levels.

Hero MotoCorp fell over -3% intraday after its December sales dropped -18% YoY.

City Gas Distribution stocks were up after the GOI ordered that new well gas and oil-linked gas be diverted to them. IGL (+4%) gained the most.

Aarti Pharmalabs (-3%) fell after the Gujarat govt asked it to close its Vapi plant over pollution issues.

Jai Corp cracked another -10% today. The stock is down -35% in the last 5 days! What a start to the year.

MOIL (+3%) was up after it said its Q3 revenue was its best-ever.

Afcons Infrastructure rallied nearly +7% intraday before giving up some gains after bagging a Rs 1,085 cr order from the DRDO.

Here are the closing prints:

Stock
Buy The Dip In Tata Motors?

Tata Motors is down -32% from it's all-time highs! The stock was a darling of the post-Covid bull rally. Does the correction make it attractive enough to buy the dip or is there more pain ahead? Here’s what experts say.

1) JLR: China is slowly improving, which is good news for long-term demand. Most experts estimate this vertical to bounce back from H2FY25. Profitability should also improve as key measures (cost reduction, shifting to more Range Rover over Jaguar) offset higher marketing spends. Electric actually continues to grow in China, despite the slowdown everywhere and Freelander could be just what JLR needs!

2) PV sales in India: Tata reported its highest-ever retail sales in the festive October, which brought down inventory levels to a normal ~30 days. Yes, sales are still muted. But the company has big launches planned in 2025. Specifically it’s doubling down on EVs, SUVs and models that run on its dual-cylinder CNG power train! PS - experts project Tata’s market share to grow to ~14% over the medium-term as a result.

Big Picture: Tata Motors still has some short-term headwinds that it needs to resolve. But most analysts agree that volume growth will return eventually across all verticals. This includes commercial vehicles, which should see growth after GOI capex picks up again. FYI - the stock trades at an attractive ~11x FY27E consolidated earnings and LKP Research has a target price of Rs 970 p/sh; +23% from current levels!