Tata Motors snaps 3-day losing run, share price jumps 7%
Tata Motors shares closed 6.79 percent up at Rs 188.05 on BSE and 6.81 percent up at Rs 188.10 on NSE.
January 29, 2020 / 04:04 PM IST
Tata Motors snapped its losing run of the last three consecutive sessions and closed with a strong gain of 6.79 percent on BSE on January 29, a day after the launch of its electric sports utility vehicle (SUV) Nexon EV.
The Nexon EV is reportedly the first of four electric vehicles planned by Tata Motors over the next 24 months. Tata Sons chairman N Chandrasekaran said that the company was planning two electric SUVs, one electric hatchback and one electric sedan.
The middle variant (XZ+) of the Nexon EV is priced at Rs 14.99 lakh, while the top-end (XZ+ LUX) is pricier by a lakh. Notably, MG Motor and Hyundai also recently launched their electric SUVs—ZS EV and Kona—priced at Rs 21 lakh and 24 lakh, respectively.
Read more: Tata Nexon electric launched at Rs 13.99 lakh
Besides, the company’s shares jumped ahead of the December quarter results that are to be released on January 30.
Brokerages are of the view that Tata Motors is likely to see a fall in revenue. There might be signs of improvement in EBITDA margins, thanks to sequential improvement in the company's India business, say industry experts and brokerages.
Brokerage firm Motilal Oswal Financial Services is hopeful that the company's India business will witness quarter-on-quarter (QoQ) recovery in volumes, which will help improve the company's sequential margins. Motilal also believes that JLR product and market mix improvement will reflect in Q3.
Shares of Tata Motors closed 6.79 percent up at Rs 188.05 on BSE and 6.81 percent up at Rs 188.10 on NSE on January 29.