Tata Motors inches up after securing orders for supply of buses

Tata Motors rose 0.42% to Rs 591.85 at 9:25 IST on BSE after the company said it has secured orders for supply of over 5,000 buses from 25 state/city transport undertakings across the country.

Meanwhile, the S&P BSE Sensex was up 42.85 points or 0.15% at 29,020.87.

On BSE, so far 1.17 lakh shares were traded in the counter as against average daily volume of 9.62 lakh shares in the past one quarter. The stock hit a high of Rs 594.50 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 584.50 so far during the day. The stock had hit a 52-week low of Rs 266 on 11 February 2016. The stock had outperformed the market over the past one month till 6 September 2016, advancing 14.14% compared with 3.2% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 27.91% as against Sensex's 8.22% rise.

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

Tata Motors in a press release issued after market hours yesterday, 6 September 2016 said it has received orders for supply of over 5,000 buses from 25 state/city transport undertakings across the country. This represents a healthy growth of over 80% plus compared to last year in the order book position of the company, Tata Motors said. Ravi Pisharody, Executive Director, Commercial Vehicle Business Unit, Tata Motors said that the company plans to execute these orders in the current financial year (FY 2017). The orders will definitely enable the company to further strengthen its leadership position in the commercial vehicles (CV) passenger space, Pisharody added.

Shares of Tata Motors were on a roll. The stock rallied 19.86% in eight trading sessions at its ruling price of Rs 591.85, from its close of Rs 493.75 on 25 August 2016.

Tata Motors' consolidated net profit declined 57% to Rs 2260.40 crore on 10.1% rise in net sales to Rs 64940.12 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 Jaguar Land Rover (JLR) sells premium luxury cars.

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