Tata Motors gains 3% on JLR US sales; CLSA says top pick

Moneycontrol Bureau

Tata Motors shares gained 3 percent in morning trade Thursday after a good show by its UK subsidiary Jaguar Land Rover (JLR) in August.

USA retail sales volume of JLR grew by 40 percent year-on-year (3 percent sequentially) to 6,661 units in August - the best month since 2005.

Jaguar's sales jumped 67 percent and Land Rover was up by 32 percent Y-o-Y, supported by new models RR, F TYPE and Sport.

Also Read - August auto sales continue to disappoint; exports rise

Meanwhile, CLSA says that Tata Motors is its top pick in auto sector, with a target price of Rs 380.

"The relative attractiveness of Tata Motors within the auto sector has increased significantly given the weakening demand / margin outlook for its peers," CLSA report said.

At 10:31 hours IST, the stock was up 2.94 percent at Rs 320.40.