Tata Motors shares surge over 20% this fiscal, should you buy?

By: | Updated: July 11, 2016 4:29 PM

Tata Motors shares rallied over 4 per cent intraday on Monday after the auto major reported 20.8 per cent increase in global sales at 92,551 units, including that of Jaguar Land Rover (JLR) vehicles, in June.

Tata Motors share priceTata Motors shares rallied over 4 per cent intraday on Monday after the auto major reported 20.8 per cent increase in global sales at 92,551 units, including that of Jaguar Land Rover (JLR) vehicles, in June. (PTI)

Tata Motors shares rallied over 4 per cent intraday on Monday after the auto major reported 20.8 per cent increase in global sales at 92,551 units, including that of Jaguar Land Rover (JLR) vehicles, in June. The company had sold 76,602 units in June 2015.

At 2.54 pm, shares of Tata Motors were trading 4.16 per cent up at Rs 484.55. The scrip opened at Rs 471.10 and has touched a high and low of Rs 486.40 and Rs 471.10, respectively, in trade so far. The scrip settled the day 4.15 per cent up at Rs 484.50.

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Global sales of all passenger vehicles in June 2016 stood at 59,831 units, higher by 31 per cent, compared to June 2015. Sales of Jaguar Land Rover grew 35.2 per cent to 47,197 units in June compared with 34,908 units in the same month last year.

Commercial vehicles sales increased by 5.26 per cent to 32,720 units from 31,083 units in the year-ago month.

Since the beginning of the ongoing financial year, shares of Tata Motors surged 22.56 per cent to Rs 465.20 till July 8.

Motilal Oswal is bullish on Tata Motors shares. The brokerage house in a research note said, “The stock trades at 12.7x/8.2x FY17/FY18E consolidated EPS. We maintain our ‘Buy’ rating on Tata Motors with a target price of Rs 558 for ordinary shares and Rs 390 for Tata Motors DVR shares.”

Tata Motors DVR was trading 3.87 per cent up at Rs 307.40 in the late afternoon trade on Monday.

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