Tata Motors, the automobile company under the Tata Group, has experienced a remarkable bull run in recent weeks.
The company’s strong performance in the March quarter has led to significant profits.
Notably, the domestic market and passenger vehicle business, including Jaguar Land Rover (JLR), have witnessed substantial growth.
JLR, in particular, achieved impressive sales of over 100,000 units during the March quarter.
As a result of this outstanding sales growth, the company’s stock reached a new 52-week high on Monday.
Impressive Jump in JLR Sales
JLR recorded sales of 107,000 units during the March quarter, reflecting a 20% annual increase.
Recognizing Tata Motors’ growth, several brokerage firms have revised their target prices for the company’s stock.
Nomura India raised the target price from Rs 508 to Rs 610, while Goldman Sachs increased it to Rs 600.
Jefferies raised their target price to Rs 665, and JP Morgan increased theirs to Rs 455. CLSA also revised its target price to Rs 624 from Rs 544.
Profitable March Quarter
Tata Motors achieved profits for the second consecutive quarter, driven by higher vehicle prices and strong demand for luxury vehicles like Jaguar Land Rover and commercial trucks.
The company reported a consolidated profit of Rs 5,408 crore in the January to March quarter, marking a significant turnaround from the Rs 1,033 crore loss incurred during the same period last year.
Dividend Announcement
Following its robust financial performance in the March quarter, Tata Motors has announced a dividend payout for its shareholders, a move not seen in nearly seven years.
The company plans to pay Rs 2 per share to its investors. The last time Tata Motors paid a dividend was in the financial year 2016.
In a stock exchange filing, the automaker expressed optimism about the demand situation, despite near-term uncertainties, and aims to build on its strong performance in FY24.
Stock Surges Today
Tata Motors’ stock opened at Rs 523.85 on Monday morning, surpassing the previous close of Rs 515.95.
During trading hours, the stock reached a fresh 52-week high of Rs 537.15 and a low of Rs 521. By noon, Tata Motors shares were trading at Rs 530.05, reflecting a 2.73% increase.
Our Thought
Tata Motors is here to stay. For a short time, the stock prices may fall but on the longer run they are the ones going to dominate the Indian Automobile Industry. Tata Motors has always proactive on listening to customer demands. They always had the best for the market.
With the everyday growing of their EV ranges, it is more than clear that future ev market will also be dominated by Tata Motors.
Have you bought Tata Motors stock? What do you think of it? Let us know in comments below.
