Tata Motor Shares Climbs 10% in Five Days, Hitting New High Amid Strong Q3 Earnings Expectations

by | Jan 31, 2024 | 0 comments

Tata Motor Shares Today: Surging to New Heights Amid Strong Q3 Expectations

Tata Motors’ Continued Winning Streak

Tata Motor Shares have been observed extending their winning streak into the fifth consecutive session. Over this period, the stock has experienced a surge of more than 10 percent, reaching a new record high of Rs 896.50 on January 31.

Drivers Behind the Surge in Tata Motors’ Shares

The anticipation of a robust Q3 performance is largely fueled by the company’s record sales in its luxury Jaguar Land Rover (JLR) segment for Q3, alongside plans to increase prices for its passenger vehicles. These developments have heightened expectations for the company’s earnings announcement scheduled for February 2.

As of 10.00 am, Tata Motors shares were seen trading 3.4 percent higher at Rs 888.40 on the NSE.

Market Capitalisation Milestone Achieved

The recent gains have significantly boosted Tata Motors’ market capitalisation to Rs 295,534 crore. This milestone has positioned Tata Motors ahead of its rival, Maruti Suzuki, making it the most valuable automobile company in India. Remarkably, Tata Motors’ stock emerged as the only Nifty 50 participant to have doubled in value in 2023.

Read More: Bajaj Auto’s Stock Soars 2% Post Q3 Triumph

 

Growth Prospects Tied to Jaguar Land Rover

The Jaguar Land Rover (JLR) segment, with sales of 1.01 lakh wholesale units in Q3—marking a 27 percent year-on-year increase and the highest in 11 quarters—is considered a key growth driver for Tata Motors. This strong performance is expected to contribute positively to the company’s Q3 earnings and profitability.

Price Hike Announcement

Additionally, Tata Motors has announced its decision to raise the prices of its passenger vehicles, including electric vehicles, by 0.7 percent starting from February 1. This move is anticipated to enhance the company’s margins.

Optimism for Commercial Vehicles

The management of Tata Motors also expressed optimism regarding the future trend for commercial vehicles. With an expected improvement in demand across most segments of the commercial vehicle industry in Q4 FY24, the outlook appears positive. This optimism is supported by the government’s ongoing focus on infrastructure development and the promising growth outlook of the economy, coupled with the company’s demand-pull initiatives.

Despite a modest 1 percent year-on-year increase in commercial vehicle sales to 34,180 units in December, passenger vehicle sales witnessed an 8 percent rise, indicating a more dynamic performance in this segment.

 

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