Tata Motors gains on strong JLR volume growth in January

Since February, the stock has rallied 13.6% as compared to 0.73% rise in S&P BSE Sensex.

Tata Motors is trading higher by 1.6% at Rs 382, in otherwise weak market, after Jaguar Land Rover (JLR), its British-based arm, recorded a strong retail sales growth of 12.1% year-on-year (yoy) in January 2014 to 39,106 units. JLR had reported retail sales of 34,877 units in the same month last year.

The volumes grew at a strong double digit rate in China (up 38.9% yoy) and North America (up 16.9% yoy) led by strong momentum in the recently launched models. UK and Europe, however, witnessed 4.3% and 1.9% yoy decline in volumes during the month, Tata Motors said in a statement.

Jaguar maintained its strong sales run, posting a robust growth of 21.5% yoy to 7,000 units, led by continued growth in the XF and XJ models and boosted further by incremental sales of the F type model.

Analyst at Angel Broking expect JLR to sustain its strong performance driven by continued momentum in the global luxury vehicle market and aided further by the strong product launch pipeline and the success of the newly launched models.

The stock opened at Rs 380 and touched a high of Rs 383 on the BSE. A combined 2.85 million shares changed hands on the counter so far on the BSE and NSE.

Meanwhile, the stock has outperformed the market by surging 13.6% in past eight trading sessions, as compared to 0.73% rise in benchmark S&P BSE Sensex since February 3, 2014.