Morgan Stanley maintains its 'overweight' rating on Tata Motors and is optimistic of a strong rebound in sales in the January-March quarter, after visiting Solihull and Castel Bromwich facilities of luxury unit Jaguar Land Rover (JLR).
The investment bank says the recent weakness in numbers is due to the slow ramp-up of launches rather than a "demand issue".
Most of the upgrades are slated for shipment in December, thus numbers thereon should see a strong sequential pickup, the note added.
JLR's global sales growth, a key issue for investors in Tata Motors, has slowed in recent months and sales fell in September for the first time in 14 months.
At 2:24 pm, Tata Motors shares were up around 2.4% at Rs 277.90.
