Tata Motors‘ acquisition of Jaguar Land Rover in 2008 marked a significant milestone for the legendary Tata Group. The company had bought the British luxury car brands for around $2.3 billion. More than a decade after the acquisition, the brands account for a huge chunk of the company’s revenue and profits.
The Investment: On 2nd June 2008, when Tata Motors completed the acquisition of Jaguar Land Rover, the stock was trading at ₹107.78. Today, the stock is valued at around ₹650. This means that an investment of ₹10,000 would have bought approximately 93 shares back in 2008. Today, those 93 shares would be worth approximately ₹60,450, marking a significant increase in value.
Background: The company’s recent Q1 earnings report has been well-received by investors and most analysts. The auto giant’s net profits for the June quarter came in at ₹3,089.7 crore, a significant turnaround from the loss of ₹4,987.01 crore it booked in the same quarter last year. The company’s revenue from operations for the April-June period stood at ₹1.2 lakh crore, up 42.1% from the year-ago period.
Analysts have expressed optimism about the company’s performance.
| Analyst | Rating | Price Target |
|---|---|---|
| Morgan Stanley | Overweight | ₹711 |
| CLSA | Buy | ₹780 |
| ICICI Securities | Add | ₹690 |
| HDFC Securities | Sell | ₹520 |
Price Action: Tata Motors’ share price was up 1.29% to trade at ₹647.70 on Wednesday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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