Shares of Tata Motors Ltd surged over 7% on Monday's trade after the company reported an 8% increase in group global wholesales in Jan-Mar (Q4FY23) on Friday. The stock was trading near its 52-week high recorded on August 17, 2022.
According to an exchange filing, the global wholesales for the Tata Motors Group in Q4 FY23, which include Jaguar Land Rover (JLR), were 3,61,361 nos, up 8% from Q4 FY22.
Global wholesales of all Tata Motors commercial vehicles including the Tata Daewoo brand were 1,18,321 nos. in the fourth quarter of FY23, down 3% from the fourth quarter of FY22.
In Q4 FY23, global wholesales of Tata Motors was at 1,35,654 nos, a 10% increase over Q4 FY22.
The company in an exchange filing said that the global wholesales for Jaguar Land Rover were 1,07,386 vehicles. Jaguar wholesales for the quarter were 15,499 vehicles, while Land Rover wholesales for the quarter were 91,887 vehicles.
On the technical front, the stock gained 28.55% from 52-week low of 366.2, and was trading at high volume of 24.8 million with price gain of 7.45.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, backed by strong news the stock has seen upsurge in morning session. He expects this move to continue towards ₹500, and a dip should be considered as a buying opportunity with immediate support at ₹455.
Further, global brokerage Goldman Sachs upgraded the Tata Motors from 'neutral' to 'buy', which further added to the positive sentiment for the stock.
Additionally, the brokerage raised its 12-month target price from ₹480 to ₹550, representing a 26% increase over the stock's closing price on April 6. It claimed that in light of the strengthening JLR outlook, it has upgraded the company to a 'buy' rating.
The wholesale volumes for JLR for the March quarter were 94,649 units (excluding the Chery Jaguar Land Rover China joint venture), up 19% from the prior quarter ended 31 December 2022 and up 24% from the same quarter a year prior.
JLR anticipates fourth-quarter free cash flow of over 800 million pounds (about $1 billion), helped by a 24% increase in wholesale volumes as supply restrictions for chips and other products eased.
At 10:23 IST, the shares of the company hit an intraday high of ₹473.10 and low of ₹450.05.
According to Mintgenie poll, 32 analysts recommend 'strong buy' for the stock.
