Tata Motors share price up 4% after CLSA maintains buy

The research firm feels that free trade is now subject to rules of origin; JLR should be largely compliant adding that investor focus to shift back to volume and mix, cost reduction efforts, it said.

December 28, 2020 / 10:11 AM IST
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Tata Motors share price jumped 4 percent in the morning session on December 28 after CLSA retained buy call on the stock.

The global research firm has maintained buy call on the stock with target at Rs 220 per share. It is of the view that the EU-UK ‘Deal’ removes key overhang. EU-UK agreement allows free trade of goods which removes a potential risk for JLR, according to a CNBC-TV18 report.

The research firm feels that free trade is now subject to rules of origin; JLR should be largely compliant adding that investor focus to shift back to volume and mix, cost reduction efforts, it said.

JLR’s China volume continues to strengthen MoM and continue to forecast a sequential volume recovery for JLR, it added.

The stock was trading at Rs 182.75, up Rs 6.85, or 3.89 percent at 09:26 hours. It has touched an intraday high of Rs 183.50 and an intraday low of Rs 179.

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The company announced a price increase across its commercial vehicle range, effective January 1, 2021. The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles. The price increase is expected across the portfolio of M&HCV, I&LCV, SCV & Buses.

“Recent issues at UK ports have had no immediate impact for Jaguar Land Rover. Our guidance of improved growth, profitability and cash flows in second half of the year continues to hold,” Tata Motors said.

The company said that Jaguar Land Rover had “comprehensive contingency planning and actions in place to respond to ongoing COVID challenges and disruption.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​
Moneycontrol News
first published: Dec 28, 2020 10:11 am

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