Shares of Tata Motors zoomed 8.15 percent during early trades on Monday to reach an intraday high of ₹ 473.30 apiece after the company posted robust growth in global wholesales, including those of Jaguar Land Rover (JLR), during the January-March period.
The carmaker’s global wholesale volume increased by 8 percent year on year (YoY) to 3,61,361 units in the fourth quarter of the financial year 2022-23. The combined worldwide sales of its commercial vehicles and Tata Daewoo range totalled 118,321 units, indicating an increase of 3 percent over the same period last year.
At 11:42 AM on Monday, the shares were quoting at ₹ 463.65 apiece, up 5.94 percent.
Tata Motors said in an exchange filing that the global sales of JLR reached 107,386 vehicles, comprising 15,499 units of Jaguar and 91,887 units of Land Rover, in the January to March quarter.
Following the news, Goldman Sachs upgraded the stock to ‘buy’ with a target price of ₹ 550.00, indicating an upside of 18.62 percent as compared to its current share price of ₹ 463.65 on the National Stock Exchange (NSE).
Another foreign brokerage, Nomura, attributed the rise in JLR volumes to an improved supply of semiconductors. It has a ‘buy’ rating on the stock with a target price of ₹ 508, which translates to an upside of 9.57 percent as compared to its share price.
Similarly, BoFA Securities has also maintained a positive outlook on the stock. It sees a case for accelerated de-leveraging for the company, going ahead. It added that the ramp-up at JLR and its booking run-rate was better than expectations.
Tata Motors is one of the largest automobile companies in India, with a portfolio that includes a wide range of cars, utility vehicles, buses, trucks as well as defence vehicles. Its marques can be found on and off-road in over 125 countries across the globe.
With a market capitalization of ₹ 1,56,403 crores, Tata Motors is a large-cap company. It reported net sales of ₹ 88,488.59 crores in the quarter that ended on December 31, 2022, indicating an increase of 22.51 percent as compared to ₹ 72,229.29 crores in the corresponding period last year. It reported a profit of ₹ 2,939.78 crores in the latest quarter, compared to a loss of ₹1,338.17 crores in the corresponding quarter last year.
Written by Simran Bafna
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