Vivid News 24: Shares of Tata Motors rose 7% in Tuesday’s trade following the manufacturer’s announcement that its global wholesales for the December quarter, which included those of Jaguar Land Rover, were at 3,22,556 units, up 13% every year.
According to a BSE report by Tata Motors, free cash flow is anticipated to be positive for the December quarter at 400 million British pounds. In response to the news, the stock increased 6.77 percent to reach a high of Rs 415.80 on the BSE. Motilal Oswal has set a target price of Rs 520 for the stock. At the current price, the aim offers a 25% potential gain for the stock.
The Tata group company revealed that global wholesales of Tata Motors commercial vehicles and the Tata Daewoo range totaled 97,956 units in the December quarter, a 5% reduction compared to the same period last year. According to the report, global wholesale sales of passenger cars reached 2, 24,600 units, a 23% YoY increase.
There were 92,345 Jaguar Land Rover automobiles sold wholesale worldwide. This included Cherry JLR volumes of 12,754 JLR numbers. Tata Motors reports that Land Rover sold 76,070 vehicles at wholesale during the third quarter as opposed to 16,275 for Jaguar.
All three of Tata Motors’ businesses, according to Motilal Oswal Securities, are recovering. According to the report, the passenger vehicle (PV) market in India is experiencing structural recovery while the commercial vehicle (CV) market would experience a cyclical recovery.
“JLR is also seeing cyclical growth, which is being aided by a good product mix. The recovery process will be delayed, nevertheless, by supply-side problems. The JLR business won’t provide any immediate catalysts, but the India business—which accounts for 50% of SoTP—will continue to improve.
The stock is currently trading for 17.1 times consolidated FY24E EPS and 3 times P/BV. We keep our “Buy” recommendation for the stock, with a target price of Rs 520. “As stated in a BSE filing by Motilal Oswal.
The brokerage claimed that the mix was better than expected, production of the new Range Rover and Range Rover Sport jumped by two-thirds sequentially to 27,5000 units in the December quarter, and that this would have a significant effect on operating performance in the quarter. According to Motilal Oswal, the order book has increased to about 2, 15,000 units, up about 10,000 orders since September 30, suggesting robust demand.