Tata Motors gains on bargain hunting

Tata Motors rose 2.55% to Rs 369.80 at 10:19 IST on BSE on bargain hunting after the stock fell 8.19% in the preceding three trading sessions to Rs 360.60 on Thursday, 12 December 2013, from a recent high of Rs 392.75 on 9 December 2013.

Meanwhile, the BSE Sensex was down 122.43 points, or 0.59%, to 20,803.18.

On BSE, so far 3.34 lakh shares were traded in the counter, compared with an average volume of 10.09 lakh shares in the past one quarter.

The stock hit a high of Rs 370 and a low of Rs 363 so far during the day. The stock hit a record high of Rs 405 on 28 November 2013. The stock hit a 52-week low of Rs 252.10 on 5 April 2013.

The stock had underperformed the market over the past one month till 12 December 2013, rising 0.15% compared with the Sensex's 3.17% rise. The scrip had, however, outperformed the market in past one quarter, rising 8.34% as against Sensex's 5.78% rise.

The large-cap company has an equity capital of Rs 643.72 crore. Face value per share is Rs 2.

Shares of Tata Motors fell 4.55% to Rs 360.60 on Thursday, 12 December 2013, on reports that the company's British luxury car unit Jaguar Land Rover (JLR) has increased its capital expenditure and R&D spends guidance for the year ending 31 March 2015 (FY 2015).

JLR has reportedly indicated an investment of 3.5 to 3.7 billion pounds in R&D and capital expenditure for FY 2015, which is substantially higher than the company's guidance of investment of 2.7 billion pounds for the current financial year ending March 2014. The increased capital investment would be towards development of new products in new and existing segments and investment in new powertrains and technologies to meet customer and regulatory requirements.

Meanwhile, JLR said its retail sales jumped 25% to 37,403 units in November 2013 over November 2012. Retail sales of the Jaguar brand jumped 55% to 6,244 units in November 2013 over November 2012. Retail sales of the Land Rover brand rose 20% to 31,159 units in November 2013 over November 2012. JLR announced the retail sales data on Wednesday, 11 December 2013.

Commenting on the November performance Andy Goss, JLR Group Sales Operations Director said: "November has been another solid month in what has so far, been a great year for Jaguar Land Rover. Our continued sales success is a testament to our sustained investment in new and exciting products which are driving growth internationally and attracting new customers to our brands".

Tata Motors' consolidated net profit surged 70.7% to Rs 3542 crore on 31.1% rise in revenues to Rs 56882 crore in Q2 September 2013 over Q2 September 2012.

Tata Motors is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.

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