Tata Motors stock rose over 4% today after global research firm CLSA maintained a buy call on the stock with a target price of Rs 220 per share. Share price of Tata Motors gained up to 4.57% to Rs 183.95 against previous close of Rs 175.90 on BSE. Market cap of the firm rose to Rs 56,636 crore.
At 12:30 pm, the share was trading 4.24% higher at Rs 183.40. The stock has gained 11.55% in the last 4 days. The stock opened with a gain of 2.33% at Rs 179.85 on BSE.
Tata Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 4.15% in one year and lost 1% since the beginning of this year.The brokerage said the EU-UK 'Deal' removes key overhang. EU-UK agreement allows free trade of goods which removes a potential risk for JLR.
Free trade is now subject to rules of origin; JLR should be largely compliant adding that investor focus to shift back to volume and mix, cost reduction efforts, CLSA said.
JLR's China volume continues to strengthen MoM and continue to forecast a sequential volume recovery for JLR, it added.
"Recent issues at UK ports have had no immediate impact for Jaguar Land Rover. Our guidance of improved growth, profitability and cash flows in second half of the year continues to hold," Tata Motors said.
Meanwhile, Tata Motors has announced an increase in commercial vehicle prices from January 2021, citing rise in material and other input costs. Without specifying the range of the price hike, Tata Motors said that actual change in price will depend on individual model, variant and fuel type.