Tata Motors shares zoom 17 pc; m-cap rises Rs 7,103 cr post Q2 earnings

Shares of Tata Motors on Tuesday zoomed nearly 17 per cent, adding Rs 7,103 crore to its market valuation, after the company posted strong quarterly results.

On the BSE, the scrip advanced 16.63 per cent to close at Rs 172.55. During the day, it jumped 18.58 per cent to Rs 175.45.

On the NSE, it climbed 16.55 per cent to close at Rs 172.15.

Led by the jump in the share price, the company's market valuation zoomed Rs 7,103.2 crore to Rs 49,821.20 crore.

It was the top gainer on both the Sensex and Nifty.

"Q2 results came in above our expectations. Improvement in China, new launches and solid cost management led to a surge in JLR margins. Though it is hard to believe that after 3 weak quarters in a row, the company has put up such a fabulous show. China volumes have improved every month since last three months," Ashwin Patil, senior research analyst (Auto Sector), LKP Securities said.

In terms of traded volume, 94.17 lakh shares of the company were traded on the BSE and over 18 crore units on the NSE during the day.

Equity markets were closed on Monday for 'Diwali Balipratipada'.

Further, the company also said its board has approved raising of around Rs 10,000 crore through preferential allotment to parent Tata Sons and external commercial borrowing.

Tata Motors said its total consolidated revenue during the period under review stood at Rs 65,431.95 crore as against Rs 71,981.08 crore in the year-ago period. It was partly affected by a Rs 3,400 crore system stock reduction in the domestic operations along with dealers.

The company's British arm Jaguar Land Rover (JLR) turned profitable, reporting a pre-tax profit of 156 million pounds, 246 million pounds better year-on-year, it added.