Tata Motors hits 52-week high on plan to turnaround domestic business

Tata Motors rose 1.89% to Rs 538.30 at 14:23 IST on BSE on reports that the company is overhauling its domestic supply chain, product portfolio and organisational structure as part of a three-year strategy to turnaround domestic business.

Meanwhile, the S&P BSE Sensex was up 140.46 points, or 0.5%, to 28,483.47

On BSE, so far 12.60 lakh shares were traded in the counter, compared with average daily volume of 9.20 lakh shares in the past one quarter. The stock hit a high of Rs 548.15 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 529 so far during the day. The stock hit a 52-week low of Rs 266 on 11 February 2016. The stock had outperformed the market over the past 30 days till 30 August 2016, rising 3.98% compared with 1.21% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 17.61% as against Sensex's 6.1% rise.

The large-cap company has equity capital of Rs 577.44 crore. Face value per share is Rs 2.

Tata Motors Chief Executive Officer & Managing Director Guenter Butschek was quoted as saying that the company is aiming to be among the top three car brands in India by year ended 31 March 2019 (FY 2019), from being in the fifth position in FY 2016. The company is rationalising the number of suppliers and will eliminate those that do not meet its standards on quality, cost and timely delivery, Butschek said according to reports.

Butschek who is at the helm of all operations of Tata Motors in India, South Korea, Thailand, Indonesia and South Africa was quoted as saying that Tata Motors has completed a study of its passenger vehicles business and will consider phasing out models that are not performing well. Butschek further said that company will launch products with new technologies and a focus on safety, low emissions and fuel economy, according to reports.

Tata Motors' consolidated net profit declined 56.98% to Rs 2260.40 crore on 8.64% rise in total income to Rs 66559.08 crore in Q1 June 2016 over Q1 June 2015.

Tata Motors is a market leader in commercial vehicles in India. The company's British unit JLR sells premium luxury cars.

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