Tata Motors stock hits 8-year high

tata1 1


The stock of Tata Motors hit an 8-year high on Friday after Jaguar Land Rover announced that it expects to report positive free cash flows of over £400 million in the June quarter. The Mumbai-based company’s stock closed 2.94% higher on the BSE on Friday at Rs 618.45, after hitting a 52-week high of Rs 624.65 or a jump of 3.96% during the day.

The increase came on the back of a 0.77% drop in the Sensex on the same day. The worldwide retail volumes of Jaguar Land Rover (JLR) recorded a jump of 29% in the June quarter compared to the same quarter last year.

Retail sales of the two British luxury brands for the June quarter were 101,994 units, including business from the China joint venture. The two brands were able to push volumes following improved availability of semiconductors that has led to increase in production.

Retail sales of JLR’s three most profitable models were up significantly compared to the same quarter a year ago with Range Rover up 199%, Range Rover Sport up 42% and Defender up 90%.

“The order book remained strong with over 185,000 client orders at quarter end, reducing from 200,000 at the end of March 31, 2023 in line with expectations as chip and other supply constraints continue to improve,” JLR said in a statement.  
Range Rover, Range Rover Sport and Defender demand remains particularly strong, representing 76% of the order book.

Tata Motors group global wholesales in the June quarter, including JLR volumes (excluding China JV), were at 322,159 units, higher by 5% as compared to the same quarter last year.

Most brokerages have put a ‘buy’ rating on the Tata Motors stock with a target price of Rs 700.

“We expect a revenue decline of 5% led by lower volumes at commercial vehicles and JLR and mixed average selling price performance across segments. We expect EBITDA margin at 10.6%,” said Prabhudas Lilladher in a note. Last month, Tata Technologies, a subsidiary of Tata Motors, received the market regulator Securities and Exchange Board of India’s approval to raise funds through an initial public offering.


Source link

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings


    Global interest in India’s clean energy: Hardeep Singh Puri

    1688778510 sebi

    Sebi circular raises MF trustees accountability