Tata Motors Ltd gains as much as 10.11 pct to its highest since June 3, 2015. The Automaker reported Jan-March net profit tripled from a year earlier with a growth of 35 pct y/y in operating profit on better operating margin by luxury vehicle maker Jaguar Land Rover (JLR) and improving domestic truck business.
On JLR unit, currency benefits boosted average selling price, momentum likely to continue in the new fiscal year, said Kotak Mahindra Bank.
According to the bank, the company’s standalone business turned profitable after 13 quarters and will likely fund the capex through internal accruals this fiscal year.
Phillip Capital sees Tata Motor’s volumes to grow 13 pct CAGR through FY17-FY18 as it retained “buy” rating with Target Price (TP) of Rs. 530.
Phillip Capital also said that China JV profitability of 49 million pounds was impressive despite operating at 40 pct utilisation.
