Tata Motors Shares Skyrocket As JLR Sales Cheers Investors, Analysts

Tata Motors‘ share price continued to gain for the sixth straight session on Monday as the company posted its Q4 business updates last week.

What Happened: The company last Friday said that its global wholesales grew 8% year-over-year to 3,61,361 units in Q4FY23. The automobile giant in a press release informed that its passenger vehicles segment’s global wholesale number stood at 1,35,654, up 10% YoY. However, the commercial vehicles segment and Tata Daewoo range saw a slight slump in sales in Q4 FY23 at 1,18,321 units, lower by 3% YoY.

But, the number that has caught everyone’s attention is the growth in sales volume at Tata Group‘s Jaguar Land Rover. Global wholesales for Jaguar Land Rover were 1,07,386 units up 19% sequentially and 24% YoY. “Jaguar wholesales for the quarter were 15,499 vehicles, while Land Rover wholesales for the quarter were 91,887 vehicles,” the company added in the press release.

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The JLR updates have really impressed global analysts. Nomura maintained its ‘buy’ rating for the stock with a price target of ₹508. The analyst firm noted JLR improved sales numbers were aided by better chip supply and it expects the company’s EBITDA margin for Q4 to be at 13.8%. Global brokerage firm CLSA also maintained its ‘buy’ rating for the stock with a target price of ₹544 – around a 24% upside from the stock’s last closing price of ₹437.55. Goldman Sachs upgraded the stock’s rating to ‘buy’ to account for the improving growth outlook for JLR. The investment banking firm also upgraded the target price to ₹550.

However, JP Morgan maintained its ‘neutral’ rating for the stock with a price target of ₹438 as it noted that JLR’s order book is beginning to decline.

Price Action: Tata Motors’ share price was up 7.78% to trade at ₹471.60 shortly after the markets opened on Monday.

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