Tata Motors hits 52-week high on Bank of America buy report

Country's largest commercial vehicle company Tata Motors' shares gained as much as 1.4 percent to touch a new 52-week high of Rs 320.85 on Wednesday despite disappointing sales data in December.

Its medium and heavy commercial vehicle sales fell a shocking 45 percent year-on-year to 9,866 units in December while the same rose 4 percent compared to previous month.

Total sales of the company went down by 20 percent YoY and 1.4 percent MoM to 65,582 units. Commercial vehicle sales declined 0.5 percent to 47,515 units whereas the same rose 7.2 percent on month-on-month basis.

Light commercial vehicle sales jumped 27.6 percent YoY and 8 percent MoM to 37,649 in the month of December. Passenger vehicle sales plunged 52 percent YoY and 21.3 percent MoM to 14,185 units.

Meanwhile, the Bank of America Merrill Lynch has upgraded the stock to a buy rating with a raised target price of Rs 360. "Although the near-term outlook seems uncertain, medium and heavy commercial vehicles may be close to a trough," the firm reasoned.

At 10:02 hours IST, the stock gained 0.57 percent to Rs 318.20 on the Bombay Stock Exchange.

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