Tata Motors Stock Hits 52-Week High On Robust Q1 Earnings
Tata Motors’ board of directors approved the cancellation of DVRs and replace them with ordinary shares
Shares of Tata Motors Limited jumped over 3 per cent to hit a new 52-week high at Rs 665 around 9:15 am on Wednesday, with 22 lakh shares changing hands on the national Stock Exchange (NSE). Tata Motors’ board of directors approved the cancellation of DVRs and replace them with ordinary shares. Under the proposed scheme, Tata Motors will issue seven fully paid-up ordinary shares of face value Rs 2 each, for every 10 DVRs.
Tata Motors on Tuesday reported a consolidated net profit of Rs 3,300.65 crore in the first quarter ended June 30, riding on sharp improvements in performance of its British arm Jaguar Land Rover and commercial vehicles business. The automaker had posted a consolidated net loss of Rs 4,950.97 crore in the same quarter last fiscal year, Tata Motors said in a regulatory filing.
Many brokerages are also upbeat on Tata Motor's Q1 earnings after the automaker topped analyst estimates by a healthy margin.
According to Moneycontrol, Motilal Oswal Financial Services (MOFSL) has said Tata Motors should witness a healthy recovery as supply-side issues ease (for JLR), along with a better mix, lower discounts and operating leverage. It expects second-quarter production and cash flow to be lower than Q1 due to the annual summer plant shutdown. Wholesales and profitability, however, are expected to be more in line with recent quarters. MOFSL has retained a buy rating with a target price of Rs 750.
Tata Motors consolidated revenue from operations stood at Rs 1,01,528.49 crore, as compared to Rs 71,227.76 crore in the year-ago period, it added. Total expenses were at Rs 98,266.93 crore, as against Rs 77,783.69 crore in the same quarter a year ago, the company said. On a standalone basis, loss after tax narrowed to Rs 64.04 crore, from Rs 181.03 crore in the year-ago period, the filing said. Standalone revenue from operations were at Rs 15,733.05 crore, as compared to 14,793.12 crore, it added.
Overall, Tata Motors said it continued its strong performance in Q1 FY24 showing a sharp improvement driven by JLR and commercial vehicles businesses, whilst the passenger vehicles business was steady, the company said.
at 11.15 am, Tata Motors is trading at Rs 647.60 apeice, up 1.27 per cent on the BSE on Wednesday.
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