Tata Motors shares hit a 52-week high owing to 24% increase in Q2FY22 global wholesale figures

In a press release, Tata Motors stated that its total global wholesales in Q2 of FY22 were at 2,51,689, which is 24 per cent higher than the same period of FY21.

Shares of Tata Motors, Tata Group’s automotive manufacturing unit, have witnessed a consecutive increase for the fourth session on Tuesday, October 12, owing to the company’s report of a 24 per cent increase in global wholesale figures for the July-September quarter in comparison to a year ago. 

With a 24 per cent rise in its shares over the last three trading sessions, Shares of Tata Motors have hit a 52-week high of Rs. 432.10 on the BSE, opening at Rs. 424.30 after a previous close of 415.65 and then trading at 430.40 in the morning trade on Tuesday. 

In a press release, Tata Motors stated that its total global wholesales in Q2 of FY22 were at 2,51,689, which is 24 per cent higher than the same time span of FY21. The wholesales also includes that of Jaguar Land Rover, a luxury vehicle arm of Tata Motors. 

The company also reported that the global wholesales for all its commercial vehicles and range from Tata Daewoo, a South Korea- based subsidy of Tata Motors, were at 89,055 in the July-September quarter, witnessing a hike of 57 per cent. Meanwhile, its passenger vehicle range wholesales were at 1,62,634 units, with an increase of 11 per cent from the same quarter last year. 

Moreover, global wholesales for Jaguar Land Rover were also reported to be 78,251 in Q2FY22. The sales include that of China-headquartered Chery Jaguar Land Rover, which sold 14,219 units in the Q2FY22. Jaguar wholesales during the time were 13,944 vehicles while the wholesales of Land Rover amounted to 64,307 units. 

Following the announcement, ICICI Direct, India’s latest retail broker, asserted that it retains its forward estimates for Tata Motors, valuing the company at a revised target price of Rs 450 on an SOTP basis (15x, 3.3x FY23E EV/EBITDA in India, JLR businesses, respectively). 

“We revise upwards our target multiples for India business amid continued outperformance at Tata Motors India and are in line with its peers,” ICICI Direct stated.

 

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