Shares of Tata Motors jumped sharply in early trade on Monday after the automaker said its global wholesales saw strong growth during the January-March period.
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Tata Motors shares hit an intraday high of 7.62 per cent at Rs 471 apiece on the National Stock Exchange.
The company said in a press release said its global wholesales, including Jaguar Land Rover, rose 8 per cent year-on-year to 3,61,361 units in the March quarter.
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In addition, the combined worldwide sales of all Tata Motors commercial vehicles and Tata Daewoo range during the period stood at 1,18,321 units, marking a 3 per cent increase over the same period last year.
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Meanwhile, the global sales of Jaguar Land Rover during the period reached 1,07,386 vehicles, which include 15,499 units of Jaguar and 91,887 units of Land Rover, as per the company’s release.
The strong business update shared by Tata Motors has been welcomed by brokerages that are upbeat about the company’s stock.
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Foreign brokerage firm Goldman Sachs has upgraded the stock to ‘Buy’ with a target price of Rs 544. This indicates an upside potential of 24 per cent from Thursday’s closing price. The brokerage said the improving outlook for the company’s luxury arm JLR was the reason behind the upgrade.
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Nomura also has a ‘buy’ rating for Tata Motors with a target price of Rs 508. The brokerage firm attributed its positive outlook for the automaker to rising JLR volumes and improved supply of semiconductors.
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BoFa Securities also maintained a positive outlook for Tata Motors, citing the improved JLR volumes, adding that it’s booking run-rate was better than expectations. The brokerage has a ‘Buy’ rating on the stock with a target price of Rs 475.
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Motilal Oswal also remains upbeat about Tata Motors, saying that all three businesses of the automaker are in recovery mode.
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In a note, the brokerage firm said, “While the India CV business will see a cyclical recovery, the India PV business is seeing a structural recovery. JLR is also witnessing a cyclical recovery, supported by a favourable product mix. However, supply-side issues will delay the recovery process. While there will be no near-term catalysts from the JLR business, the recovery in the India business will continue.”
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The brokerage has a ‘Buy’ rating on the stock with a target price of Rs 525.
