Connect with us

Business News

Tata Motors rallied around 30% in four sessions. here is why

Published

on


Tata Motors’ global wholesales grew 24% year-on-year to 2,51,689 units.

Strong global wholesale sales numbers from Tata Motors and record high order book for Jaguar Land Rover are taking Tata Motors to a multi-year high. Tata Motors stock rose 5 per cent to Rs 435.65 on Tuesday, its highest level since 2018, after the company announced that its global wholesales were up 24 per cent year on year in the second quarter of the current fiscal, including Jaguar Land Rover. -On-year at 2,51,689 units.

Global wholesales across Tata Motors’ commercial vehicles and the Tata Daewoo range stood at 89,055 units in Q2, up 57 per cent over the same period last year.

In the second quarter of the current fiscal, all its passenger vehicle wholesales grew by 11 per cent year-on-year to 1,62,634 units and Jaguar Land Rover did global wholesales of 78,251 vehicles, which includes CJLR volumes of 14,219 units, CJLR JLR and Cherry A joint venture between Automobiles and is a non-consolidated subsidiary of JLR.

Meanwhile, Tata Motors on Friday said the underlying demand for Jaguar Land Rover products remains strong with the order book at record levels. However, it warned that Jaguar Land Rover’s retail sales were hampered by the impact of the global semiconductor shortage.

Analysts say Tata Motors is in a better position than other auto makers in the country to deal with the semiconductor shortage facing the global automobile industry and this is one of the reasons behind the rise in the share price of Tata Motors.

Shares of Tata Motors have outperformed the benchmark Nifty with a gain of 28 per cent in the last four trading sessions. Tata Motors has been one of the best bluechip counters this year, as the stock has more than doubled from its December 31 closing price of Rs 183.70.

Tata Motors stock has risen almost seven times from the lockdown low of Rs 63.60 stuck on March 24, 2020.

BSE data shows that veteran investor Rakesh Jhunjhunwala holds 3.77 crore shares in Tata Motors, which is 1.14 per cent stake in the company.

As of 11:13 am, Tata Motors was the top gainer of Nifty 50 stocks at Rs 422, up 1.53 per cent.

.

Copyright Indian Lekhak Limited 2021. All Rights Reserved