 "Tata Motors declines on profit booking")
Tata Motors was trading lower by over 2% at Rs 377 on the BSE on profit booking after the stock rallied nearly 30% thus far in October.
The stock had outperformed the market by surging 29% during the current month as compared to 4% rise in the Sensex till yesterday on improved outlook for sales of its Jaguar Land Rover (JLR), its luxury vehicle business.
The stock had outperformed the market by surging 29% during the current month as compared to 4% rise in the Sensex till yesterday on improved outlook for sales of its Jaguar Land Rover (JLR), its luxury vehicle business.
After a sluggish start in FY16, JLR’s volumes have finally picked up momentum in September 2015. A decent month of retail sales was complemented by strong growth in wholesale despatches. JLR’s global wholesale for the month were up 55.4% year-on-year (YoY) to 51,074 units, while the year-to-date FY16 wholesale volumes were up 5.5% YoY.
Rohan Korde analyst at Prabhudas Lilladher maintains ‘buy’ rating on the stock with a target price of Rs 518.
“We remain positive on Tata Motors, given the strong product portfolio at JLR and bottoming?out of volumes in the India business. However, until volumes ramp?up at the local production in China, coupled with a demand recovery there, sales in that geography are likely to trend lower YoY in FY16,” analyst said in a report dated October 15, 2015.
At 12:00 pm, the stock was down 1% at Rs 383 on the BSE. A combined 3.59 million shares changed hands on the counter on the BSE and NSE.