Tata Motors share price rallied over 8 per cent to Rs 144.40 apiece on BSE after Jaguar Land Rover retail sales grew 50 per cent in the July-September quarter
Tata Motors share price has gained nearly 10 per cent in just 5 trading sessions
Tata Motors share price rallied over 8 per cent to Rs 144.40 apiece on BSE after JaguarLand Rover retail sales grew 50 per cent in the July-September quarter. Retail sales for the quarter ended September 30 were 1.13 lakh units, up 53. 33 per cent from 74,067 units sold in the previous quarter. In an exchange filing, Tata Motors said that Jaguar Land Rover retail sales for the three-month period to 30 September 2020 were significantly improved from sales in the preceding quarter but continue to be impacted by Covid-19. Research and brokerage firm Motilal Oswal Financial Services has maintained a ‘buy’ rating to the stock with a target price of Rs 226 apiece, implying a potential upside of 56.5 per cent from today’s high.
Tata Motors share price has gained nearly 10 per cent in just 5 trading sessions. ”Tata Motors-owned JLR delivered better than expected volume performance in Sept’20 with a lower decline on yoy basis and more than 60% MoM jump,” Mitul Shah, Vice President (Research) at Reliance Securities, told Financial Express Online. Moreover, its profitable market of China reported healthy growth of 30% yoy. “This strong volume performance of JLR is a key positive for investors. We expect JLR volume to improve gradually on the back of revival in the global economy going forward,” Shah added.
Tata Motors informed that almost all of Jaguar Land Rover’s retailers worldwide are now open or partially open and the company’s plants have resumed production with robust protocol and guidelines to ensure that effective social distancing, hygiene and health monitoring measures are in place and all sites are Covid-19 secure.
Around 11.15 AM, Tata Motors shares were trading 7.92 per cent at Rs 144.50 apiece on BSE. In comparison, S&P BSE Sensex was up 0.83 per cent or 323 points to trade at 39,296. In September, Tata Motors sold a total of 46,109 units, which is a 28 per cent on-year gain and 26 per cent rise sequentially. In the domestic CV segment, it sold 23,245 units, which grew by 38 per cent on a month-on-month basis. “Tata Motors has resumed its monthly volume reporting system since the last 2 months,” analysts at Reliance Securities said.
The launch of the new Land Rover Defender continued and sales gained pace in the quarter, rising to 4,508 units in the month of September. China sales were also particularly encouraging, up 14.6% on the prior quarter and 3.7% year-on-year. Jaguar Land Rover will be releasing its financial results for the quarter to 30 September 2020 later this month.