Tata Motors hits nine-month high; stock advances 33% in one month

Analysts believe the company will benefit from an improving demand outlook, cost-cutting initiatives, and better FCF generation.

Shares of Tata Motors were trading higher for the third straight day on Wednesday. The stock hit a nine-month high at Rs 170, up 8 per cent on the BSE on Wednesday on the expectation of improvement in demand outlook. The stock of the Tata Group commercial vehicles manufacturer was trading at its highest level since February 17, 2020. In the past month, it has outperformed the market by surging 33 per cent, as compared to a 10 per cent rise in the S&P BSE Sensex.

Tata Motors reported a healthy operational performance in July-September (Q2FY21). Consolidated margins were at 12.5