Tata Motors rose 2.58% to Rs 444.90 at 14:03 IST on BSE on reports that a foreign brokerage has maintained a buy rating on the stock citing volume growth in Jaguar Land Rover to be key catalyst for the stock.
Meanwhile, the S&P BSE Sensex was up 309.84 points or 1.15% at 27,142.50.
On BSE, so far 2.66 lakh shares were traded in the counter as against average daily volume of 5.36 lakh shares in the past one quarter.
The stock hit a high of Rs 445.75 and a low of Rs 431.90 so far during the day. The stock had hit a record high of Rs 605.57 on 3 February 2015. The stock had hit a 52-week low of Rs 418 on 12 June 2015.
The stock had underperformed the market over the past one month till 17 June 2015, sliding 16.51% compared with Sensex's 1.8% fall. The scrip had also underperformed the market in past one quarter, declining 23.31% as against Sensex's 6.62% fall.
The large-cap company has equity capital of Rs 577.44 crore. Face value per share is Rs 2.
The foreign brokerage reportedly said that the current stock price of Tata Motors builds in a very pessimistic scenario of a sharp volume slowdown of Jaguar Land Rover (JLR) and pricing erosion in China. JLR has consistently grown ahead of its German peers in China and its China market share has climbed from 4.6% in 2010 to 8.5% in 2014, the brokerage said.
JLR is the British luxury car unit of Tata Motors.
Tata Motors' consolidated net profit declined 56.2% to Rs 1716.50 crore on 4% growth in net sales to Rs 67297.99 crore in Q4 March 2015 over Q4 March 2014.
Tata Motors is India's largest automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia.
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