Tata Motors clocks highest-ever PV sales in 9 years in Feb 2021; stk up 5%

ICICI Securities maintain 'buy' rating on Tata Motors with target price of Rs 375 per share.

Shares of Tata Motors were trading at their highest level since May 2018, up 5 per cent to Rs 344.45 on the BSE, on Tuesday after the company's sales growth in the month of February outperformed sector peers across domestic commercial vehicle (CV) & passenger vehicle (PV) segments.

The Tata group company reported a strong 54 per cent year-on-year (YoY) growth in domestic sales at 58,473 units in the month of February 2021. It retained the positive momentum in passenger vehicle (PV) segment and reported 119 per cent year-on-year (YoY) jumped at 27,225 units. The February sales have been the highest-ever sales for Tata Motors PV in nearly 9 years (107 months), the firm said.

The company's commercial vehicle (CV) segment, too, reported volumes of 33,966 units, up 21 per cent YoY and 3.2 per cent on month-on-month (MoM) basis.

"Positive momentum was sustained (single digit growth MoM) in wholesale dispatches in the CV domain with trucks leading the space with healthy double digit YoY growth figure with buses segment still struggling. With government impetus for purchasing buses for urban transport and voluntarily scrappage policy under way, the segment is well poised to report robust numbers, going forward," ICICI Securities said in a note. The brokerage firm maintains 'buy' rating on Tata Motors with target price of Rs 375 per share.

Re-imagine marks a bold and necessary step change in evolution for Jaguar Land Rover (JLR) in what is set to be a transformational decade for its business worldwide given the ongoing rise of Electric Vehicles (EVs). We are enthused by its commitment towards phasing out of solely fossil fuel powered vehicles by FY26E while maintaining financial discipline on the deleveraging and capex fronts, analysts said in stock update.