Tata Motors shares gain 3% post Q2 earnings; brokerage says 'accumulate'
The stock gained even as the auto major reported a net loss of Rs 430 crore for the September quarter after many quarters of solid profit.
BT Online New Delhi Last Updated: November 9, 2015 | 16:21 IST
The stock rose 3.43 per cent to Rs 409.85 on the Bombay Stock Exchange (BSE). Photo: Reuters
Shares of Tata Motors gained over 4 per cent in trade on Monday even as the auto major reported a net loss of Rs 430 crore for the September quarter after many quarters of solid profit.
The stock ended the day 3.89 per cent higher after rising as much as Rs 413 on the Bombay Stock Exchange (BSE).
The company's profits took a beating on account of the blasts at godown at Tianjin Port in China where its lost over 2,000 luxury JLR cars.
The bottomline was also impacted by the rising finance cost and falling sales in China, its largest market.
The company reported exceptional items for the quarter including a charge of Rs 2,493 crore on account of the vehicles damaged in the Tianjin Port explosions.
On August 13, there was a series of explosions at Tianjin Port in China where the company has its largest godown.
"The process for finalising an insurance claim may take some months to conclude, so insurance and other potential recoveries will only be recognised in future period when paid or confirmed and have not been recognised in this period," Jaguar Land Rover CEO Ralf Speth told PTI.
Broking firm Angel Broking maintained 'accumulate' rating on the stock with a target price of Rs 424, but added it will review their estimates post the disappointing performance at JLR.