Tata Motors rises 1% as JLR reports 29% jump in Q2 volumes

Tata Motors

Shares of Tata Motors rose 1 percent in trade on October 6, as its wholly owned subsidiary Jaguar Land Rover (JLR) reported 29 percent jump in Q2 volumes.

At 11:15 am the Tata Motors share was trading 0.72 percent higher at Rs 626.25 on NSE.

It was further detailed in the filing that the wholesale volumes were reported at 96,817 cars (excluding the Chery Jaguar Land Rover China JV), up 29 percent from the year-ago quarter, and 4 percent higher from the April-June period, notwithstanding the annual two-week summer plant shutdown. Wholesale volumes for the first half of the financial year were 190,070, up 29 percent from the year-ago period.

The notification further added that, the order book remains strong at 168,000 units, reducing in line with the fulfilment of client orders, with demand for the most profitable Range Rover, Range Rover Sport and Defender models accounting for 77 percent of the orders. JLR will report full financial results for Q2 FY24 at the beginning of November.

Tata Motors, on July 25, swung back into the black with a consolidated net profit of Rs 3,203 crore for the first quarter of fiscal year 2023-24 (Q1 FY14), boosted by the improved margin of its passenger vehicle (PV) business and robust sales at its luxury car unit, Jaguar Land Rover (JLR). The automobile manufacturing company had reported a net loss of Rs 5,006.60 crore in Q1 FY23 on revenues of Rs 71,934.66 crore.

Revenue from operations increased 42 percent to Rs 1.02 lakh crore in the quarter under review. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at Rs 14,700 crore, up 177 per cent.

Brokerage firm Nomura is bullish on Tata Motors stock and has given a target price of Rs 786 per share in a report released on October 6. The firm expects Tata Motors to continue maintaining a strong order book and healthy growth of retail demand.

Brokerage firm Morgan Stanley has given an ‘overweight’ rating to the Tata Motors stock with a target price of Rs 711 per share in a report released on October 6. The report further stated that, “Tata Motors should be a de-leveraging play in FY24 & India EV Play In FY25.”

Tata Motors stock has given a return of 42.40 percent over the last six months. The benchmark Nifty50 index has given a return of 11.37 percent over the same duration.