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Tata Motors rallies 10% on heavy volumes; stock soars 53% from 52-week low

The stock was up 10% to Rs 198, rallied 53% from its 52-week low of Rs 129 touched on February 8, 2019, against 1% decline in the Nifty 50 index.

SI Reporter  |  Mumbai 

jaguar landrover JLR

Shares of rallied 10 per cent to Rs 198 apiece on the National Stock Exchange (NSE) on the back of heavy volumes after the company denied the reports of exploring options for Jaguar Land Rover Automotive Plc (JLR) including stake sale.

"There is no truth to the rumors that is looking to divest its stake in and we would not like to comment further on any market speculation," the company said in a regulatory filing on Friday after market hours.

According to Bloomberg report, Tata Group, India’s biggest conglomerate, is exploring strategic options for its Jaguar Land Rover Automotive Plc unit including a potential stake sale in the struggling luxury carmaker, people familiar with the matter said. CLICK HERE TO READ FULL REPORT

With today’s gain, the stock of has soared 53 per cent from its 52-week low Rs 129 touched on February 8, 2019, in the intra-day trade after it reported the biggest quarterly loss of Rs 26,961 crore in the December quarter. In comparison, the benchmark 50 index was down 1 per cent during the same period.

The net profit during the quarter was impacted by an exceptional item of of of Rs 27,838 crore. It had posted a net profit of Rs 1,199 crore in the year-ago quarter.

Tata Motors said the performance was impacted by challenging market conditions, particularly in China and inventory corrections. The company continues to invest in exciting products and leading edge technologies. It is taking decisive actions to make the business Fit for Future by stepping up competitiveness, reducing costs and improving cash flows.

Analysts at expect current headwinds in China and EU to subside by the end of CY19. Steady growth in domestic PV/CV business, volume recovery in JLR and favourable currency are expected to drive revenue CAGR of 6 per cent over FY18-21. The brokerage firm maintains ‘buy’ rating on the stock with a target price of Rs 230 per share.

Meanwhile, Tata Sons, promoter of Tata Motors had bought 21.4 million shares representing 0.73 per cent of the company through open market between February 11, 2019, and February 22, the exchange data shows. holding in Tata Motors increased to 34.34 per cent from 33.61 per cent earlier.

At 11:10 am, Tata Motors was trading 9 per cent higher at Rs 196 on the In comparison, the 50 index was up 0.24 per cent at 10,890 points. A combined 34.49 million equity shares changed hands on the counter on the and so far.

First Published: Tue, March 05 2019. 11:19 IST