Tata Motors share rose nearly 3% in early trade today after brokerage CLSA maintained buy call on the stock. Tata Motors share gained 2.81% to Rs 176.85 against previous close of Rs 172 on BSE.
The large cap stock has gained 3.37% in the last 4 days. Tata Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving average.
The share has gained 4.34% in one year and fallen 6.4% since the beginning of this year.
However, in a month, the share has gained 26.46%. Market cap of the auto firm rose to Rs 53,516 crore on BSE.
CLSA has given a target price of Rs 220 per share on the Tata Group stock. According to a media report, CLSA has cited a good start to the third quarter with volume recovery in JLR continuing, driven by China and US. JLR's overall estimated retail sales moderated to 4 percent YoY in October.
Volume recovery on a QoQ basis coupled with cost cuts should drive deleveraging for the company. Risks include a sudden slowdown in its recovery trajectory and no-deal Brexit, the research firm added.
Another brokerage Motilal Oswal said the company will avail the triple benefit of a) macro recovery, b) company-specific volume/margin drivers and c) a sharp improvement in FCF and leverage in both JLR as well as India business.
Meanwhile, Sensex and Nifty rose in line with global markets to scale fresh record highs in early trade today. While Sensex climbed 302 points to 44,825, Nifty gained 90 points to 13,145.
In Q2 of the current fiscal, the auto giant reported a consolidated loss of Rs 314.5 crore against Rs 216.56 crore loss in the year-ago period. However, it reduced its loss from Rs 8,437.99 crore on a quarter on quarter basis.