Stock market analysts have maintained ‘buy’ rating on Tata Motors stock with an intraday target of Rs 435.

According to them, interested traders can purchase the stock above Rs 425 with a strict stop loss of Rs 420. If the stock market remains on positive track, the next target will be above Rs 440.

Shares of the company, on Wednesday (Aug 20), closed at Rs 424.05 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 43966. Current EPS & P/E ratio stood at 48.97 and 8.66 respectively. The share price has seen a 52-week high of Rs 840 and a low of Rs 374 on BSE.

According to a report, Tata Motors that is planning to make the world’s low-priced car, has decided to create an electric-drive version.

The E-Nano would be produced together with the Norway-based company Miljobil Grenland.

The company’s board reviewed the Jaguar- Land Rover acquisition at its meeting on August 20.

Considering the existing capital market condition and the modification in the price levels in the stock markets since May 2008, the company’s directors appraised the previous fund raising plan.

The board decided to limit the rights issue only to two simultaneous but unlinked securities namely - (a) an issue of ordinary shares and (b) an issue of `A` ordinary share having differential voting rights.

Moreover, in place of earlier proposal to issue convertible preference shares, the company will now lift the necessary fund by monetizing a piece of the company’s investment via a arranged divestment of certain investments at existing market rates over the next 6 to 8 months.

The company at the time of acquirement declared to lift a part of the total finances required through a rights issue to the stockholders of three simultaneous but unlinked security such as an issue of ordinary share of a total amount of about Rs 22 billion; an issue of `A` ordinary shares having different voting right of a total amount of about Rs 20 billion; and an issue of 0.5% 5-years convertible preference shares for a total amount of about Rs 30 billion.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Ashok Leyland, Eicher Motors and Swaraj Mazda.