Tata Motors share price rallied over 7% to open at a fresh 52-week high on Monday after the auto major reported strong Q3 results with a two-fold jump in its consolidated net profit. Tata Motors shares gained as much as 7.19% to ₹942.00 apiece on the BSE.
Tata Motors posted a net profit of ₹7,025 crore in the third quarter of FY24, a 137.5% growth from ₹2,957.71 crore in the year-ago period, helped by strong demand for passenger and commercial vehicles, price hikes and a superior product mix.
The company’s revenue in Q3FY24 rose 24.9% to ₹110,577 crore from ₹88,489 crore, YoY. Its revenue from the British luxury car unit, Jaguar Land Rover (JLR) jumped to ₹76,665 crore from ₹58,863 crore, YoY.
Read here: Tata Motors Q3 Results: Net profit surges 137% to ₹7,025 crore, revenue up 25% YoY; 5 key highlights
Operating performance during the December quarter improved as EBITDA increased by 42.5% YoY to ₹15,333 crore and EBITDA margin expanded by 171 basis points (bps) to 13.94%.
Global brokerage firm Jefferies raised FY24-26 EPS estimates for Tata Motors by 7-11%. It has a ‘Buy’ rating on the stock and increased the target price to ₹1,100 per share.
Nomura said Tata Motors’ Q3 JLR margins were ahead of estimates and believes further re-rating is likely. It expects the success of electric vehicles (EVs) could drive JLR re-rating. It has a ‘Buy’ call on the stock with a target price of ₹1,057 per share.
Tata Motors share price has rallied over 11% in the last one month and more than 44% in three months. The stock has doubled investors’ money in one year as it surged over 110% during the period.
At 9:20 am, Tata Motors shares were trading 6.88% higher at ₹939.25 apiece on the BSE.
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(To be updated)
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Published: 05 Feb 2024, 09:20 AM IST