Share Price of Tata Motors Today: Tata Motors share price rallied over 13 per cent today to hit a fresh 52-week high of Rs 249.50 apiece on BSE. The stock has been on a winning-spree for some time now, and has surged over 30 per cent so far in January 2021. Earlier, yesterday, Tata Motors shares gained over 11 per cent to end at Rs 220.10 per share. The company said that it’s subsidiary Jaguar Land Rover (JLR) has posted a second successive quarter-on-quarter recovery in sales, despite the continuing impact of Covid-19 pandemic.
Mitul Shah, Head of Research at Reliance Securities, told Financial Express Online that the run-up in Tata Motors’ stock in the past few trading sessions is on account of numerous fundamental triggers. Strong improvement in JLR volumes compared to the previous quarter with favourable geographical mix, as China volumes reported double-digit growth of around 20 per cent. BSE Sensex has managed to gain 3.11 per cent So far this month.
Shah also said that in terms of standalone operations, the passenger vehicle segment recorded remarkable growth during YTD, while on the other hand CVs also started witnessing good traction recently. “Overall cost control measures, clear focus on cash-flow by controlling working capital and capex, debt reduction plan etc augur well for the company. Therefore, we remain positive on the stock,” Shah said.
The company’s retail sales stood at 1.28 lakh units for the quarter ending December 31, 2020, up 13.1 per cent from 1.13 lakh vehicles sold in the preceding quarter. Tata Motors posted 20.2 per cent growth in sales as compared to the previous quarter, while it rose 19.1 per cent on-year. The company informed that the sales ramp-up of the new Land Rover Defender witnessed retails rising to 16,286 vehicles in the third quarter of the current fiscal, up 66 per cent from the preceding quarter.
AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online that strong positive sentiment, recovery in JLR sales in China and expectation of improved Q3FY21 results have propelled Tata Motors to its new and very steep 52-week high. “However, technically, Tata Motors looks very overbought and investors should use this rally to exit previous buy positions and book profits,” he added.
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