Tata Motors share fell over 4% today after the auto giant's subsidiary Jaguar Land Rover's (JLR) sales for January in the UK fell 42.8% . The large cap stock touched an intraday low of Rs 322.15, falling 4.08% against previous close of Rs 335.85 on BSE. Tata Motors share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has risen 87.44% in one year and gained 77.14% since the beginning of this year. Market cap of Tata Motors stood at Rs 1 lakh crore on BSE. Share of Tata Motors closed 3.20% or Rs 10.75 lower at Rs 325.10. In UK, JLR sales fell to 4,542 units from 7,938 units (YoY).
Jaguar's UK sales fell 60.7% to 914 units against 2,325 units (YoY).
Land Rover UK sales declined 35.4% to 3,628 units against 5,613 units (YoY) In a month, the share has climbed 64.26%. The recent spike in the share came after the auto firm reported a 25.27 per cent rise in sales for January.
From Rs 262.60 on January 29, the stock has climbed to Rs 325.10, implying a rise of 23.8% during the period.
Total sales rose to 59,959 units in January against a total of 47,862 units in the same month last year. Domestic sales rose 28 per cent to 57,742 units against 45,242 units in January last year. On February 1, FM Nirmala Sitharaman announced a voluntary vehicle scrappage policy to phase out old vehicles in her third budget speech.
The phasing out of old vehicles will be a good move for the auto industry since it will lead to more demand for new vehicles particularly e-vehicles.
Tata Motors' overall share of electric vehicles in its 2020 sales stood at 43.3%. The firm has said that EVs' contribution is 'poised for further growth in 2021 and beyond.
Meanwhile, Motilal Oswal has given a buy call on Tata Motors with a target price of Rs 350. The stock trades at 3.4x FY22 EV/EBITDA and 1.4x P/BV. The brokerage has maintained a Buy call on the stock.
By Aseem Thapliyal