Shares of Tata Motors were in focus today after the firm reported a 44 per cent rise in domestic sales to 80,633 units in September. The company logged its highest ever monthly sales led by record sales of Nexon and Punch. However, investors were not enthused about the sales performance with the stock falling after four consecutive sessions of gains. Tata Motors share slipped up to 1.76 per cent to Rs 397.50 against the previous close of Rs 404.65 on BSE. Market cap of the firm fell to Rs 1.33 lakh crore. Tata Motors stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. It has taken a hit in 2022, declining 17.44 per cent as the Russia-Ukraine war dampened sentiment in the global market and around the stock in the first half of this year.
Negative cues arising out of the Russia-Ukraine war, the economic slowdown after Covid-19 lockdowns across the world, spike in the cost of commodities and a loss of production due to the shortage of semiconductors have affected sentiment around the stock in 2022.
However, Emkay Global is positive on the stock and given a target price of Rs 530 implying a 32.8 per cent upside against the market price of Rs 399 on September 28.
"We retain our constructive view on Tata Motors, led by expectations of volume upturn in both standalone/JLR divisions, aggressive cost savings, and debt reduction," the brokerage said.
BNP Paribas too is bullish on the stock and sees a 43.41 percent upside with a target price of Rs 565. The brokerage made the recommendation on September 30. The market price in that session stood at Rs 393.95.
The Tata Group firm reported a 85 per cent rise in its total domestic passenger vehicle dispatches at 47,654 units last month, as compared to 25,730 units in the September last year.
Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said that the company attained its highest ever monthly sales of 47,654 units last month led by record sales of Nexon and Punch.
"With the recent launch of the Tiago EV, the company has opened new vistas and is poised to drive the mass adoption of EVs across the country. Going forward, we expect the festive season will witness strong retail on the back of improving the supply of vehicles," he added.
In the first quarter of the current fiscal, Tata Motors' loss widened to Rs 4,951 crore against a consolidated net loss of Rs 4,450 crore in the corresponding quarter of last fiscal. Consolidated revenue from operations in Q1 stood at Rs 71,935 crore against Rs 66,406 crore in the year-ago period. On a standalone basis, Tata Motors reported a net loss of Rs 181 crore against a net loss of Rs 1,321 crore in the year-ago period. Revenue from operations rose to Rs 14,874 crore in Q1 compared to Rs 6,577 crore in the same period a year ago.
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