Share Price of Tata Motors Today: Tata Motors share cost rallied more than 13 per cent today to hit a fresh 52-week higher of Rs 249.50 apiece on BSE. The stock has been on a winning-spree for some time now, and has surged more than 30 per cent so far in January 2021. Earlier, yesterday, Tata Motors shares gained more than 11 per cent to finish at Rs 220.10 per share. The firm stated that it is subsidiary Jaguar Land Rover (JLR) has posted a second successive quarter-on-quarter recovery in sales, regardless of the continuing influence of Covid-19 pandemic.
Mitul Shah, Head of Research at Reliance Securities, told TheSpuzz Online that the run-up in Tata Motors’ stock in the previous handful of trading sessions is on account of several basic triggers. Strong improvement in JLR volumes compared to the earlier quarter with favourable geographical mix, as China volumes reported double-digit development of about 20 per cent. BSE Sensex has managed to get 3.11 per cent So far this month.
Shah also stated that in terms of standalone operations, the passenger automobile segment recorded outstanding development through YTD, though on the other hand CVs also began witnessing very good traction lately. “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 stated.
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 automobiles sold in the preceding quarter. Tata Motors posted 20.2 per cent development in sales as compared to the earlier quarter, though it rose 19.1 per cent on-year. The firm informed that the sales ramp-up of the new Land Rover Defender witnessed retails increasing to 16,286 automobiles in the third quarter of the present fiscal, up 66 per cent from the preceding quarter.
AR Ramachandran, Co-founder & Trainer, Tips2Trade, told TheSpuzz Online that sturdy positive sentiment, recovery in JLR sales in China and expectation of enhanced Q3FY21 outcomes have propelled Tata Motors to its new and extremely steep 52-week higher. “However, technically, Tata Motors looks very overbought and investors should use this rally to exit previous buy positions and book profits,” he added.