Tata Motors rises 4%, hits 10-month high post November domestic sales
Shares of Tata Motors rose 4 per cent to 10-month high of Rs 186.75 on the BSE on Wednesday after the company reported 26 per cent year on year (YoY) growth in total domestic sales at 47,859 units in the month of November 2020. It had sold total 38,057 units in domestic market.
The stock of commercial vehicles company was trading at its highest level since January 31, 2020. In past one month, Tata Motors has outperformed the market by surging 40 per cent, against 12 per cent rise in the S&P BSE Sensex.
In the passenger vehicle (PV) segment, domestic sales more-than-doubled with 21,641 units sold in November 2020 as against 10,400 units sold in the corresponding month of the previous year. In the commercial vehicle (CV) segment, the company sold 27,982 units in November 2020 compared to 30,588 units sold a year ago, showing a marginal decrease.
Analysts at HDFC Securities upgraded Tata Motors to 'BUY' (ADD earlier) as the brokerage firm feels OEM will benefit from an improving demand outlook, cost-cutting initiatives, and better free cash flow (FCF) generation. Jaguar Land Rover’s (JLR’s) retail volumes are improving from Covid-19 lows, and system inventories are normalising. Analysts are building in double-digit volume growth at JLR over FY22/23E (12/11 per cent).