Tata Motors stock rallies to 52-week high post Q1 results

By: | Published: August 30, 2016 6:11 AM

The stock of Tata Motors on Monday rallied to its 52-week high of `528.05 to close at `524.70, up 4.18%.

The stock was the best performer in the BSE Auto Index, which was up 1.44% to close at 21, 540.82. Shares of other auto firms such as MRF, Hero Moto, Amara Raja Batteries and Bajaj Auto were up between 3.2% and 1%. (Reuters)The stock was the best performer in the BSE Auto Index, which was up 1.44% to close at 21, 540.82. Shares of other auto firms such as MRF, Hero Moto, Amara Raja Batteries and Bajaj Auto were up between 3.2% and 1%. (Reuters)

The stock of Tata Motors on Monday rallied to its 52-week high of `528.05 to close at Rs 524.70, up 4.18%. The stock was the best performer in the BSE Auto Index, which was up 1.44% to close at 21, 540.82. Shares of other auto firms such as MRF, Hero Moto, Amara Raja Batteries and Bajaj Auto were up between 3.2% and 1%. Barring Bharat Forge and Mahindra & Mahindra, whose stocks were down 0.58% and 0.21% respectively, all the shares ended the Monday trading session in green.

On August 26, the automaker reported a decline of 57.2% y-o-y in its net profit at Rs 2,236 crore on the back of foreign exchange losses after Brexit, which offset the higher sales at its luxury unit Jaguar Land Rover (JLR). However, revenues grew to Rs 67,056 crore from `61,510 crore in the corresponding quarter last year, an increase of 9%.

Tata Motors ended the June quarter with EBITDA of Rs 7,612.93 crore, down almost 31% y-o-y and other expenses worth Rs 15,038.54 crore, up 48% y-o-y. “The operating performance in the quarter reflected the overall higher wholesales, offset by adverse forex impact of 207 million pound including revaluation of $84 million, mainly euro payables resulting from depreciation in the pound following the Brexit vote,” the company said in a press release.

Data compiled from Bloomberg shows that 80% of the analyst have a buy recommendation for the stock, about 13% of the analysts recommend hold where as 6.7% of the analysts suggest sell.

Analysts at Jefferies said that, “While the stock has rallied in the last 12 months, the combination of an improving franchise and favourable currency makes a strong case for continued outperformance.”

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