Shares of Tata Motors rallied over 13 per cent in intraday trade today to hit fresh 52-week high of Rs 249.50 on the Bombay Stock Exchange on Tuesday on the back of strong volume. The Tata Group stock has surged 26 per cent in two sessions amid reports that the auto major was set to enter into a partnership with Tesla, and that the electric vehicle giant may even take a stake in its passenger vehicle (PV) business. The exchange has sought clarification from Tata Motors in this regard.
Tata Motors share price has delivered massive return of 292 per cent from its 52-week low of Rs 63.60 as on March 24, 2020, while it gained 23.27 per cent in one year and risen 31.7 per cent since the beginning of this year. In a month, the stock has gained 35.4 per cent.
Extending Monday's rally of 11 per cent, Tata Motors share price opened higher at Rs 228.8 against the previous closing price of Rs 220.10 on the BSE. During the day's trade, the stock hit 52-week high of Rs 249.50, up 13.35 per cent. The market cap of the the large cap stock increased to Rs 73,517.58 crore.
On the volume front, there was surge in buying as 199.96 lakh shares changed hands over the counter as compared to two-week average volume of 36.38 shares on the BSE.
There are various factors that boosted Tata Motors' stock, such as improved sales of its overseas subsidiary, Jaguar Land Rover (JLR), apart from reports of partnership with Tesla.
In an exchange filing on Monday, Tata Motors announced JLR's 2020 sales figures, which was largely hit by the COVID-19 pandemic, but it also showed signs of recovery as sales in China remained strong. Retail sales for the quarter ending December 31, 2020 stood at 128,469 vehicles, 13.1 per cent higher than the 113,569 vehicles sold in the preceding quarter, but down 9 per cent on the same period last year. China sales were particularly encouraging, up 20.2 per cent on the prior quarter and 19.1 per cent year-on-year (YoY), JLR said in a statement.
JLR said it remained committed to its electrification strategy and has a growing portfolio of electrified vehicles, embracing fully electric, plug-in hybrid (PHEV) and mild hybrid (MHEV) vehicles. With sales of new electrified vehicles including the Land Rover Discovery Sport and the Range Rover Evoque PHEVs ramping up through the October to December quarter, a total of 53 per cent of the company's retail sales for the three-month period were electrified. This included 6.1 per cent all-electric, 5.5 per cent PHEV and 41.4 per cent MHEV. This brings the share of electrification to 43.3 per cent of the company's sales for 2020, with that figure poised for further growth in 2021 and beyond.
Tata Motors suffered a consolidated loss of Rs 314.5 crore for the second consecutive quarter in July-September, impacted by low demand in the wake of the COVID-19 pandemic. The company had posted net loss of Rs 216.56 crore in the year-ago period and Rs 8,437.99 crore in the June quarter of the current fiscal. The consolidated revenue dropped by 18.2 per cent to Rs 53,530 crore in Q2 FY21 as against Rs 65,431.95 crore in Q2 FY20, dented by fall in commercial vehicle and JLR volumes.
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