Shares of Tata Motors rallied nearly 6 per cent in intra-day trade to hit record high of Rs 347.10 on the Bombay Stock Exchange on Tuesday. Investors' sentiment was buoyed by strong February sales. The auto major had reported a 51.07 per cent rise in total sales at 61,365 units in February as compared to 40,619 units in the same month last year.
Early today, Tata Motors shares opened higher at Rs 330.70 against previous closing price of Rs 328.10. During the day's trade, the large cap stock gained as much as 5.79 per cent to hit 52-week high of Rs 347.10. Paring some of early gains, the shares ended 5.36 per cent higher at Rs 345.70, in line with BSE benchmark Sensex that closed 447 points or 0.9 per cent higher at 50,296. The market cap of the auto major surged to Rs 1.15 lakh crore.
On Monday, Tata Motors reported robust sales for the month of February on the back of sustained sales momentum in passenger vehicle and tractor segments. Passenger vehicle sales in the domestic market surged over two-fold to 27,225 units, as against 12,430 units in the same month last year. Commercial vehicle sales jumped 21 per cent to 33,966 units, as against 28,071 units in the year-ago period.
Despite strong performance, brokerage firm Prabhudas Lilladher has reduced target price on Tata Motors to Rs 255, from current market price of Rs 345.70 amid concerns over performance of its British subsidiary, Jaguar Land Rover (JLR).
For the third quarter ended December31, 2020, the company posted a 67.2 per cent surge in profit at Rs 2,906 crore, compared with a profit of Rs 1,738 crore a year earlier. Total revenue from operations rose 5.5 per cent to Rs 75,654 crore from Rs 71,676 crore in the same period last year.