Moneycontrol Bureau
Tata Motors shares surged 7.9 percent intraday Tuesday to hit fresh 52-week high of Rs 593.10 after analysts have maintained their bullish view on the stock, citing strong sales in 2HFY17 due to new models. The stock rallied 20 percent in seven consecutive sessions.
With retaining overweight rating on the stock, Morgan Stanley says it expects continued strong sales in the US in the second half as the new model cycle plays out.
With key Land Rover launches planned for Q4FY17 and FY18 mix should improve, it feels.
JLR North America sales grew 46 percent YoY in August against 51 percent growth in July, driven by Jaguar sales that jumped 189 percent YoY (against 174 percent YoY in July).
F-Pace sales came down to 1,200 units in August against 1,600 units in July but XE sales increased in same period.
Land Rover sales were up 15 percent YoY in month gone by against 21 percent jump in July. On the flipside, incentives in Lang Rover continued to rise with August incentives up 179 percent YoY and 75 percent MoM, implying some pass through of forex gains, Morgan Stanley says.
JP Morgan, which is also overweight on Tata Motors, says it recently raised volume growth at JLR to 14 percent for the year.Meanwhile, the auto company has secured orders worth Rs 900 crore from state and city transport units in last 5 months.At 15:12 hours IST, the scrip of Tata Motors was quoting at Rs 589.25, up Rs 39.45, or 7.18 percent.Posted by Sunil Shankar Matkar
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