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Tata Motors bucks trend on buzz of large defence contract

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Capital Market
Last Updated : Jan 30 2014 | 11:57 PM IST

Tata Motors rose 0.82% to Rs 354.75 at 10:03 IST on BSE after a media report suggested that the company is close to winning a Rs 1000 crore defence contract.

Meanwhile, the BSE Sensex was down 199.22 points, or 0.96%, to 20,448.08.

On BSE, so far 85,000 shares were traded in the counter, compared with an average volume of 7.37 lakh shares in the past one quarter.

The stock hit a high of Rs 355.75 and a low of Rs 349 so far during the day. The stock hit a record high of Rs 405 on 28 November 2013. The stock hit a 52-week low of Rs 252.10 on 5 April 2013.

The stock had underperformed the market over the past one month till 29 January 2014, sliding 5.20% compared with the Sensex's 2.58% fall. The scrip had underperformed the market in past one quarter, falling 7.84% as against Sensex's 1.35% fall.

The large-cap company has an equity capital of Rs 643.72 crore. Face value per share is Rs 2.

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According to a media report, Tata Motors is in the final stages of concluding a Rs 1000 crore contract with the Ministry of Defence for the supply of 1,239 heavy duty trucks.

The deal for the so-called six-wheel-drive high mobility vehicles (HMV), fitted with material handling cranes, has the option of a follow-on order for 600 more units, the report added

Vernon Noronha, vice president, defence and government business at Tata Motors was quoted by the media as saying that the company is expected to conclude the deal in a few days.

Tata Motors' managing director, Karl Slym, died in Bangkok on 26 January 2014. Slym, who was in Bangkok to attend a board meeting of Tata Motors Thailand, reportedly committed suicide by jumping from the 22nd floor of the Shangri-La Hotel.

Tata Motors' British luxury car unit Jaguar Land Rover (JLR) delivered its strongest ever full year global sales performance due to the introduction of a series of multi-award winning new vehicles in 2013. Full year retail sales rose 19% to 425,006 units in 2013 over in 2012, with strong growth in all major regions and new Jaguar Land Rover records set in 38 markets, including Russia, Brazil, Korea and Canada.

On 2 January 2014, Tata Motors had reported 42.28% decline in its total vehicle sales at 37,852 units in December 2013 over December 2012.

Tata Motors' consolidated net profit surged 70.7% to Rs 3542 crore on 31.1% rise in revenues to Rs 56882 crore in Q2 September 2013 over Q2 September 2012. The company will unveils Q3 results on 10 February 2014.

Tata Motors is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.

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First Published: Jan 30 2014 | 10:07 AM IST

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