 "Tata Motors hits new high")
Tata Motors has rallied 2% to Rs 495, also its record high on BSE, extending its rally on the bourses.
In past one week, the stock surged 14% from Rs 433 on August 8, after reporting a robust earnings for the quarter ended June 2014 on back of strong sales of luxury Jaguar and Land Rover (JLR). The benchmark S&P BSE Sensex gain 3.3% during the same period.
The country’s largest automaker by revenue reported consolidated net profit of Rs 5,398 crore, the highest in nine quarters, compared with Rs 1,726 crore in a year ago quarter.
Operating margins at its JLR business rose to 20.3% from 15.8% a year ago.
Meanwhile, the luxury car business sold 39,467 units in July 2014, up 12.2% as compared to 35,162 units in the same period last fiscal. Cumulative wholesales for JLR for the current fiscal (April-July 2014) were 154,623 vehicles against 125,782 vehicles in the same period last fiscal.
Surjit Arora analyst at Prabhudas Lilladher maintains ‘Accumulate’ rating on the stock with a revised target price of Rs 521.
“We have revised our earnings estimates upwards by 9 to10% taking into account the strong performance at JLR,” says analyst in a report.
In past one week, the stock surged 14% from Rs 433 on August 8, after reporting a robust earnings for the quarter ended June 2014 on back of strong sales of luxury Jaguar and Land Rover (JLR). The benchmark S&P BSE Sensex gain 3.3% during the same period.
The country’s largest automaker by revenue reported consolidated net profit of Rs 5,398 crore, the highest in nine quarters, compared with Rs 1,726 crore in a year ago quarter.
Operating margins at its JLR business rose to 20.3% from 15.8% a year ago.
Meanwhile, the luxury car business sold 39,467 units in July 2014, up 12.2% as compared to 35,162 units in the same period last fiscal. Cumulative wholesales for JLR for the current fiscal (April-July 2014) were 154,623 vehicles against 125,782 vehicles in the same period last fiscal.
Surjit Arora analyst at Prabhudas Lilladher maintains ‘Accumulate’ rating on the stock with a revised target price of Rs 521.
“We have revised our earnings estimates upwards by 9 to10% taking into account the strong performance at JLR,” says analyst in a report.