Tata Motors surged 9.39% to Rs 418.90 after a foreign brokerage reportedly maintained its 'overweight' stance on the stock with a target price of Rs 448.
The Tata Motors stock hit a 52-week high of Rs 420.40 in intraday today. It has surged 232.46% from its 52-week low of Rs 126 hit on 16 October 2020. In the past one month, the stock has climbed 39.89% compared with 3.32% rise in the Sensex.Meanwhile, the auto major said Jaguar Land Rover (JLR)'s retail sales for the second quarter ending 30 September 2021 were 92,710 vehicles, 18.4% lower than the 113,569 vehicles sold in Q2 last year. Of the total retail sales, Jaguar sales were 19,248 units (down 29.6% YoY) and Land Rover sales were 73,462 units (down 14.8% YoY) during the period under review.
Retails were lower year-on year in most regions, including North America (down 15.6%), China (down 6.3%), Europe (down 17%), and in the UK (down 47.6%), but were up in the Overseas region (up 10%).
In line with July guidance, Q2 FY22 wholesales totalled 64,032 units (excluding the China JV), down 12.8% year-on year. As with retails, wholesales were lower year-on-year in all regions apart from the Overseas region (up 40.5%).
Despite the impact of the semiconductor shortage on production and sales, the company continues to see strong demand for its products with global retail orders at record levels in excess of 125,000 vehicles.
Shares of Tata Motors rose 1.74% in the previous session after the media report said the auto major is seeking to buy Ford's units in Tamil Nadu and Gujarat states. According to reports, Ford's manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles. While Tata Motors has no manufacturing facility in Tamil Nadu, it has a plant in Gujarat, which is next to Ford's production unit, reports said.
Separately, the media reported that TPG is in advanced talks with the Tata group to invest $1 billion-$1.5 billion in its electric vehicle unit. The group is also in talks with several Middle East-based sovereign wealth funds (SWFs) such as Abu Dhabi Investment Authority and Saudi Arabia's PIF to come as anchor investors on the deal, the report added.
Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
The auto major's consolidated net loss contracted to Rs 4,450.92 crore in Q1 FY22 as compared to a net loss of Rs 8,437.99 crore in Q1 FY21. Total revenue from operations soared 107.63% YoY to Rs 66,406.45 crore in Q1 FY22.
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