Tue Economic Times Markets 4 Tata Group stocks correct up to 37% after logging multibaggers returns. Should you buy? Synopsis Teta Group stocks corrected up to 37% from their S2-week highs after strong rallies last year. Tata Investment Corporation led the decline, followed by Automotive Stampings, Tata Technologies, and Trent Limited. Experts noted these stocks could regain previous highs due to sold fundamentals and market stabilization, Four Tata Group stocks have corrected up to 37% from their S2-week highs after delivering eo multibagger returns in the past one year and could retest these levels on current form. The stocks also have strong fundamentals to support the next leg of the rally, according to experts, —_—— ‘The highest fall of 37% is seen in Tata Investment Corporation followed by Automotive ‘Stampings Assemblies and Tata Technologies, each correcting 25%, Meanwhile, TRF shares have declined 19%. This comes on the back of strong rallies in each of these stocks. TATATECHNOLO... VOLTAS MORE NSE - 023s em 27 aug 2024 1092.20.00 He Mer meric foes) |r a era eon” 4570267 1 norms) og ee a i sao 148 Unlock Stock 200 400/370,‘Tata Investments gains over the last one year have been to the tune of 157% while those of Tata Technologies, Automotive Stampings and TRE have climbed up by 180, 113 and 123%, respectively. This is a significant outperformance over Nifty which has yielded 28% in the same period. Multibagger stocks for Tata stable Tata nvestment 9748 7 157 Automotive Stampiogs 11095 2s 13 Tata Tech 1400 2 180 Tee om ® 123 he Learn Investing in stocks at ZERO risk. Want to know how? Click here. On the recent correction, Sonam Srivastava, Founder and Fund Manager at Wright Research said that the Tata Group stocks, including Trent Limited, have shown significant fluctuations, particularly after Trent's inclusion in the Nifty50 index. ‘Trent's recent rise following its index inclusion could serve as a catalyst for other Tata stocks to regain their previous highs if market conditions stabilise and investor sentiments improve, she opined, adding that there is a strong likelihood that these stocks could test their 52-week highs again, driven by renewed buying interest. Barring TRF which reported a year-on-year decline in its June quarter profit, the rest have delivered a double-digit growth. in net profits. Tata Investment posted a 38% jump in revenue growth while Automotive Stampings, TRF and Tata Tech delivered single-digit revenue growth. Not just these four, two more stock viz. Trent and Voltas have rallied over 250% and 100%. Both companies had a strong QI. While Trent posted a standalone profit of 131%, Voltas’ profit after tax (PAT) jumped by 58% in the said quarter. ‘Ace Equities data shows 12 stocks with gains of 50% or more while out of 25 listed Tata Group companies, 22 have delivered price returns ranging from 15% to 250% over the past year. Apart from strong fundamentals, Srivastava of Wright Research also sees Group's brand positioning and diversified business lines as a trigger for the overall listed pack. Over longer term, the ongoing demand for Tata products andservices, combined with their market leadership, supports their long-term growth narrative. She however has a note of caution for investors on the valuations front on the back of the rally in many of these stocks including Trent. "While Trent has demonstrated strong growth, the overall rally among Tata stocks raises questions about whether they remain compelling investments at current prices. The valuations appear stretched compared to historical averages,” she added. ‘Technical analysis: Potential weaknesses and strengths A technical analysis of Tata Group stocks, including Trent Limited, reveals both strengths and potential weaknesses. Having experienced strong upward momentum in most Tata stocks followed by corrections, the current chart patterns indicate volatility going ahead, the Wright Research analyst said. "Key support levels around their recent highs will be crucial and if stocks can maintain momentum above these levels, it may signal strength. Conversely, if they breach these support levels, it could indicate potential weaknesses,” she said. (Data Inputs: Ritesh Presswala) @isclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)