Tata Motors hits new high, stock surges over 5%

Till 1515 hours, a combined around 13 million shares have changed hands on the BSE and NSE.

Tata Motors has moved higher by over 5% to Rs 373, also its new high on the Bombay Stock Exchange, after its UK subsidiary Jaguar and Land Rover (JLR) announced its best ever September retail sales.

JLR reported record retail sales of 43,181 units during the month gone by, a growth of 17% year-on-year and 55% sequentially.

Meanwhile, most of the analyst expects the JLR will report strong volume growth over next few months led by start of dispatches of new RR Sport and continued traction from recent launches of RR and F-Type, which in turn will boost realisation and margin.

The stock opened at Rs 353 and hit a low of Rs 352 on BSE. A combined 12.57 million shares change hands on the counter till 1510 hours on BSE and NSE.

Analysts expect JLR to do better than its global peers and grow its volumes at 10-15% over FY13-16.

Higher volume and margin estimates and an improved outlook in the US and China (45% of revenues) has led analysts to give a higher valuation to JLR, according to Business Standard report.