Tata Motors is trading higher by about 2% at Rs 318, nears to its 52-week high of Rs 321, on the Bombay Stock Exchange ahead of December sales numbers today. The stock opened at Rs 316 and has seen a combined 3.71 million shares changing hands on the counter so far on both the exchanges.
The stock of India’s biggest commercial vehicles maker has rallied 15% in past three weeks compared to 1.4% rise in benchmark Sensex after the company's UK subsidiary Jaguar Land Rover (JLR) reported a stronger-than-expected November sales.
JLR had recorded a strong wholesale volume growth of 18.7% year-on-year to 34,649 units for the month of November 2012, which was ahead of our estimate of 28,500 units, led by robust growth across Jaguar and Land Rover.
Analyst at Angel Broking has recommended ACCUMULATE on the stock by retaining positive view on JLR and expect a 12% volume CAGR (compound annual growth rate) over FY2012-14E driven by Evoque and new product launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and all-wheel drive and smaller engine options in the XF and XJ models).