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Home / Market / Stock-market-news /  Tata Motors rises most in 33 months on robust March quarter earnings

Mumbai: Shares of Tata Motors Ltd closed 9% higher at 458.20 apiece, posting the maximum gain since 10 September 2013, after the company posted better-than-expected earnings. The increase in the target price by various broking firms also boosted sentiment.

The stock touched a high of 463.90, a level last seen on 3 June 2015. The scrip closed higher for the sixth consecutive session. Since 23 May, it has gained 19.7%. The stock hit a 52-week low of 266 a share on 11 February and since then, it gained 72.26%. So far this year, it gained 17.11%.

Tata Motors DVR (differentiated voting rights) closed at 311.65, up 10.83% from its previous close.

Broking firms Motilal Oswal, Antique Broking, PhillipCapital, Emkay Research, Kotak Institutional Equities and Karvy Brokings have increased the target price on the stock.

Tata Motors Ltd’s revenue and profit for the three months ended 31 March beat analyst expectations handsomely, on the strength of the performance of the company’s Jaguar Land Rover (JLR) unit. Consolidated net profit rose to 5,177 crore during the quarter, up 201% from 1,716.5 crore a year ago. Net sales rose 18.76% to 79,926.12 crore from a year ago. The profit was the highest in seven quarters. A Bloomberg poll of brokerages had estimated a net profit of 3,521 crore and net sales of 73,473.90 crore.

At a standalone level, the company posted a net profit of 464.99 crore, an improvement over the 1,164.25 crore net loss a year ago. Net sales rose 16.7% to 12,459.51 crore from 10,676.19 crore the previous year. Ebitda (earnings before interest, tax, depreciation and amortization) margin stood at 16.2%.

“Overall a stellar performance with JLR margin surprising despite weak product mix, this coupled with continued improvement in volumes should allay investor anxiety," PhillipCapital said in a note to its investors.

PhillipCapital has retained “buy" rating on the stock and increased its target price to 510 a share, Emkay Research has also retained “buy" rating on the stock and increased its target price to 520 a share from 465 earlier, Kotak Institutional Equities too reiterated “buy" rating and increased its price target to 500 a share from 450 earlier, while Karvy Brokings has increased the target price by 11% to 450 a share. Motilal Oswal has maintained “buy" rating on the stock and increased the target price to 524 a share, while Antique Broking has increased its target price to 503 per share and reiterated its “buy" rating.

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