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Tata Motors records highest weekly gain in six years

The stock was up 3% at Rs 353, rallied 19% in the current week from Rs 297 on October 1 on the BSE.

SI Reporter  |  Mumbai 

Tata Motors records sharply weekly gain in six years

is trading higher by 3% at Rs 353, extending its 15% rally in the past four trading days on the BSE, set to report its highest weekly gain in the past six years.

The stock hit a intra-day high of Rs 354, rallied 19% in the current week from Rs 297 on October 1, after the company’s Jaguar Land Rover (JLR) units' reported record September sales in United States as volumes grew 61% year-on-year to 6,850 units.

At 01:59 pm, the Sensex was up 0.43% or 115 points at 26,961, gained 2.8% during the week.

Earlier in week ended May 24, 2009, stock had zoomed 30%, while in week ended July 26, 2009, it rallied 18%, the Bloomberg data shows.

Analyst at JP Morgan has ‘overweight’ rating on the stock with price target of Rs 490.

“While continues to report healthy sales growth in the western markets, the demand environment remains challenging in emerging – particularly China. On the recent issue relating to diesel fuel, derives around 40% of its sales from diesel variants – of which Europe accounts for 90%. Thus, the contribution from the US and China is limited,” JP Morgan said in a report dated October 2, 2015.

While highlighted that it meets required emission norms across geographies, particularly with the move to its in-house Ingenium engine, potential industry-wide implications of diesel / customer perception towards the fuel need to be monitored, added report.

According to Business Line report, British luxury car manufacturer JLR will invest about $2 billion in the first phase to set up a manufacturing base in the Slovak Republic, CLICK HERE TO READ FULL REPORT.

First Published: Fri, October 09 2015. 14:03 IST