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Tata Motors reaches 4-year high on Morgan Stanley upgrade

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Shares of Tata Motors rose 14% to Rs 383 on Thursday.

Bangalore: Shares of India’s Tata Motors on Thursday rose to their highest level in nearly four years after Morgan Stanley Research upgraded the stock on hopes of encouraging annual earnings from Jaguar Land Rover parent.

The brokerage raised its rating on Tata Motors from “equal-weight” to “overweight”, which it had maintained since 2017, saying the automaker’s India business posted a full-year gain after eight years of losses. Looking forward to posting.

Shares of Tata Motors rose 14% to Rs 383 to become the top percentage gainer on India’s blue-chip Nifty 50 index.

Morgan Stanley analysts also believe that Tata Motors will enjoy the highest operating and financial leverage among its peers, aided by its Indian business.

The automaker previously said it aims to have nearly zero automotive debt by fiscal 2024, which Morgan Stanley sees as a bullish indicator for the company. In July, Tata Motors warned of short-term impact from semiconductor shortages, rising costs. Raw materials and the uncertainty of the pandemic.

However, Morgan Stanley said these risks are now well understood by market participants and are potentially included in the share price.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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