Tata Motors shares were trading 6.7 per cent up on Friday after Deustche Bank upgraded the company’s stocks to ‘Hold’ from ‘Sell’ despite the automaker reporting a marginal 2 per cent dip in net profit at Rs 3,507.54 crore for the quarter ended December 31, 2015.
At 11.38 am, Tata Motors shares were trading 4.46 per cent up at Rs 287.95. The scrip opened at Rs 281 and has touched a high and low of Rs 294.15 and Rs 272 respectively, in trade so far. Later, the scrip ended the day 8.34 per cent up at Rs 298.65.
The bank said that earnings highlighted its worst fears as the company suffered from weak pricing and profitability. However, it said price correction in past six months justified a rating upgrade for now.
Tata Motors’ marginal fall in bottomline was mainly due to the comparatively poor show by its British arm Jaguar Land Rover (JLR), which saw its net dip by over 186 million pounds. But this was mostly compensated by the massive recovery of the parent Tata Motors, which hugely narrowed its net loss to about Rs 201 crore from a massive Rs 2,122.72 crore in the same period last fiscal.
So far, around 11.06 lakh shares of Tata Motors exchanged hands on the BSE as compared with two-week average daily volume of 9.62 lakh shares.