Tata Motors shook off a two-day downtrend, surging 2.3 percent to approximately Rs 800 at 11:22 am on January 4. The catalyst behind this positive shift was a noteworthy ‘overweight’ rating bestowed by global brokerage JPMorgan, coupled with a substantial upward revision of the target price, citing multiple growth drivers.
JPMorgan’s latest target of Rs 925 marks a striking 36 percent surge from the previous benchmark, suggesting an impressive 18 percent upside from the last recorded closing price of Rs 781. Analysts at JPMorgan attributed this upgrade to the robust performance of Tata Motors’ British subsidiary, Jaguar Land Rover (JLR), highlighting better-than-anticipated margins and free cash flow. The report noted that the push for profitability by global luxury OEMs contributed significantly to this favorable outlook.
Despite fierce competition in the passenger vehicle segment, Tata Motors maintained a resilient market share, further bolstering its upgraded status. The report from JPMorgan commended the auto major’s ability to withstand rivalry pressures and highlighted its competitive edge.
In December, Tata Motors, a prominent player in the electric vehicle domain, reported a noteworthy 5 percent year-on-year increase in total vehicle sales. The company successfully sold a total of 77,855 units in December, compared to 74,356 units in the same period the previous year. The passenger vehicle segment saw an even more impressive surge, with sales climbing by 8 percent to reach 43,675 units in the month.
