Shares of Tata Motors on Tuesday posted their biggest ever 2-day gain after the automaker recorded robust quarterly results.
Shares of Tata Motors on Tuesday posted their biggest ever 2-day gain after the automaker recorded robust quarterly results. On NSE, the shares jumped 18.82 per cent to an intraday high of Rs 175.50 from the previous close of Rs 147.70. The scrip was trading at Rs 172.35, up 24.65, or 16.69 per cent on NSE at the time of reporting. On Friday, the homegrown auto major posted a consolidated net loss of Rs 187.7 crore for the second quarter of the ongoing fiscal, against a loss of Rs 1,009.49 crore in the same period of 2018-19. The stock markets were closed on Monday for ‘Diwali Balipratipada’.
The consolidated revenue of Tata Motors in Q2FY20 stood at Rs 65,431.95 crore compared to Rs 71,981.08 crore in the corresponding period of last year. The company’s British arm Jaguar Land Rover (JLR) turned profitable, posting a pre-tax profit of 156 million pounds, 246 million pounds better on-year.
What brokerages say
Global brokerage CLSA upgraded the stock to ‘buy’ from ‘sell’, increasing target price to Rs 190 as against Rs 120. The brokerage also said that the margin of JLR has begun to recover after a contraction of four years in a row. The earnings in FY21-22 may surge 4-16 percent factoring in higher-margin at JLR.
Kotak Institutional Equities maintained ‘buy’ on the stock with a target price up from Rs 190 to Rs 200. The brokerage expects the company to maintain its momentum. It also expected the domestic commercial vehicle business to rebound in the second half of the ongoing fiscal.
Meanwhile, Tata Sons, the promoter of the major operating companies of the Tata Group, will hike its shareholding in Tata Motors to 43.73 per cent after the proposed Rs 6,500 crore preferential issue by the automobile manufacturer, Tata Motors said.