Shares of Tata Motors gained over 3 per cent to Rs 137.35 apiece on the BSE on Tuesday, a day after the auto major reported 27 per cent growth in its total domestic sales to 49,669 units in October.
Total commercial vehicle (CV) sales grew 2 per cent to 28,472 vehicles in October as against 28,002 vehicles in the year-ago period, the company said. Commercial vehicle exports, too, grew 20 per cent during October to 2,420 units against 2,019 a year ago, according to the statement.
For the quarter ended September 30, Tata Motors reported a consolidated net loss of Rs 307.3 crore as compared with a net loss of Rs 187.70 crore a year ago. However, this was much lower than the loss of Rs 1,970.3 crore forecast by a Bloomberg poll of five brokerages. The total revenue from operations during the period crimped. It was 18.19 per cent to Rs 53,530 crore, from Rs 65,431.95 crore a year ago.
JLR’s retail sales during the three-month period rose 53.3 per cent QoQ to 113,569 units, but sales in most markets continued to be impacted by Covid-19. They were down 11.9 per cent year-on-year (YoY). But China showed an encouraging sales trend - up 14.6 per cent in the prior quarter and 3.7 per cent YoY. READ MORE
"For Tata Motors (TML) we build a 6% sales CAGR in FY20-23E, with FY23E profit of Rs 6,620 crore. Our estimates factor in flattish JLR and nearly 9% India volume CAGR over that time. TML’s stated deleveraging intent (near zero automotive debt over the next few years) is a hugely positive development. Improvement in JLR volumes ex-China and further progress on cost and cash controls are key monitorables," analysts at ICICI Securities said in a result review report issued on October 28.
The brokerage has maintained a "BUY" rating on the stock with the target price of Rs 165.
At 10:05 AM, the stock was trading over 2 per cent higher at Rs 135.65 on the BSE as compared to a 0.71 per cent rise in the benchmark S&P BSE Sensex.
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