Tata Motors rose 0.99% to Rs 511.90 at 12:39 IST on BSE after rating agency Standard & Poor's Global Ratings upgraded its long-term corporate rating on Tata Motors to 'BB+' from 'BB' earlier.
Meanwhile, the S&P BSE Sensex was up 56.35 points or 0.2% at 28,120.96.
On BSE, so far 2.63 lakh shares were traded in the counter as against average daily volume of 8.71 lakh shares in the past one quarter. The stock hit a high of Rs 514.35 and a low of Rs 508.60 so far during the day. The stock had hit a 52-week high of Rs 522.20 on 8 August 2016. The stock had hit a 52-week low of Rs 266 on 11 February 2016. The stock had outperformed the market over the past one month till 16 August 2016, gaining 2.84% compared with 0.82% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 29.13% as against Sensex's 9.4% rise.
Global rating agency Standard & Poor's Global Ratings (S&P) yesterday, 16 August 2016, upgraded its long-term corporate rating of Tata Motors to 'BB+' from 'BB' earlier, citing improvement in Tata Motors' competitive position following the better performance of its 100% subsidiary, Jaguar Land Rover Automotive PLC (JLR). S&P has simultaneously raised its issue rating on Tata Motors' US-dollar-denominated senior unsecured notes to 'BB+' from 'BB'. The outlook on the rating is stable. The stable outlook reflects S&P's view that Tata Motors can maintain steady profitability, especially at JLR, supporting its financial position with ratio of funds from operations (FFO) to debt of about 40% over the next 12-24 months, the rating agency said.
According to S&P, JLR has launched new models successfully, extended existing ones, and expanded into new market segments. JLR also helped strengthen Tata Motors' financial position and its ability to withstand moderate volatility and the risks from the UK's recent vote to leave the European Union (Brexit), the rating agency said in a statement. JLR's improved competitive position will enable Tata Motors to register good operating performance over the next two years in the form of revenue growth and higher EBITDA (earnings before interest, taxation, depreciation and amortization) margin, S&P said. JLR is British luxury car unit of Tata Motors.
Tata Motors' consolidated net profit jumped 201.61% to Rs 5177.06 crore on 18.76% growth in net sales to Rs 79926.12 crore in Q4 March 2016 over Q4 March 2015. The company is set to announce Q1 June 2016 results on 26 August 2016.
Tata Motors is a market leader in commercial vehicles in India. The company's British unit JLR sells premium luxury cars.
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