 "Joydeb Das (left), an 'unwilling farmer', with his family")
Tata Motors' stock remained largely unaffected on Wednesday after the Supreme Court quashed the acquisition of land made in 2006 by the West Bengal government for the company's Nano car project.
Tata Motors gained 1.7 per cent to Rs 537 on the BSE and was the fourth highest gainer among Sensex stocks. This was on a day the benchmark Sensex rose 0.4 per cent, or 109 points.
A two-member bench on Wednesday ruled that Tata Motors' acquisition was illegal and void and did not meet the norms under the Land Acquisition Act 1894.
Analysts believe that the news will not have any material impact on the company both in the near and long-term. "The long term story is intact. JLR is going through a good period, and its new models are seeing good success. The domestic business is picking up with the introduction of new models in the passenger car segment. And the CV upcycle could continue if the government's scrappage norms are lucrative enough," said Prayesh Jain, AVP - research, IIFL Wealth.
While Tata Motors' first quarter results came in weaker than estimates, analysts expect JLR margins to improve in the coming quarters on the back of higher volumes. Foreign brokerage JP Morgan, for instance, has a overweight on the stock. "New model launches are expected to drive growth at JLR. Further, as the hedges roll over, the benefit from the weaker GBP should reflect in margins from the second half onwards. The India business segment is benefitting from an improving macro outlook," said the brokerage in a research report dated August 26.
