Tata Motors gained 1.36% to Rs 302.20 at 14:11 IST on BSE after a foreign bank upgraded shares of auto major to overweight from underweight and raised its target price citing improving performance at unit Jaguar Land Rover.
Meanwhile, the BSE Sensex was up 338.61 points, or 1.88%, to 18,334.49
On BSE, 6.99 lakh shares were traded in the counter compared with average volume of 9.77 lakh shares in the past one quarter.
The stock hit a high of Rs 308.80 and a low of Rs 295.35 so far during the day. The stock hit a record high of Rs 337.05 on 10 January 2013. It hit a 52-week low of Rs 225.15 on 6 September 2012.
The stock had outperformed the market over the past one month till 28 August 2013, rising 2.86% compared with the Sensex's 8.87% fall. The scrip had also outperformed the market in past one quarter, rising 0.78% as against Sensex's 10.74% fall.
The large-cap company has an equity capital of Rs 643.72 crore. Face value per share is Rs 2.
A foreign bank upgraded Tata Motors to overweight from underweight and raised its target price to Rs 368 from Rs 265, citing improving performance at unit Jaguar Land Rover (JLR).
The foreign bank said it has been cautious on Tata Motors on volume concerns for its standalone operations and potential cash flow worries at JLR due to high levels of capital expenditure. But JLR's performance has been improving as Europe and the US are showing signs of recovery along with continued volume strength from China, it said.
While Tata Motors' domestic business remains under stress due to macro concerns, Barclays believes that an improved performance from JLR should offset any drag from the standalone operations, the foreign bank said in a report on Wednesday, 28 August 2013.
Tata Motors' consolidated net profit fell 23.11% to Rs 1726 crore on 8% growth in revenue (net of excise) to Rs 46785 crore in Q1 June 2013 over Q1 June 2012.
Tata Motors is India's largest automobile company, with consolidated revenues of Rs 1,88,818 crore ($34.7 billion) in 2012-13. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 7.5 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. It is also the world's fourth largest truck and bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia.
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