Tata Motors rallies over 5% as Q3 net beats analysts’ estimates
Shares in Tata Motors Ltd gained more than 5 per cent in morning session trade on Tuesday after the auto giant reported better-than-expected third-quarter results.
Beating analysts' estimates, Tata Motors on Monday reported a rise of 195.14 per cent in its consolidated net profit to Rs 4,805 crore in the October-December quarter of 2013.
Revenue jumped 38.6 per cent year-on-year to Rs 63,877 crore in the three-month period under review. The profit was boosted by strong demand for the company's luxury Jaguar Land Rover (JLR) vehicles.
The company announced the quarterly figures after trading hours on Monday, February 10, 2014. In response to the better-than-expected results, Tata Motors' shares jumped 5 per cent to Rs 382.45 apiece on the Bombay Stock Exchange (BSE). On the national Stock Exchange (NSE), the stock jumped 5.12 per cent to Rs 382.70 apiece.
Elara Securities upgraded its target price for Tata Motors' shares from Rs 435 to Rs 440, and recommended 'Buy' for the stock.
In its report, Elara Securities said, "We upgrade our target price marginally to Rs 440 (from Rs 435) on mild upgrade of earnings estimates, and raise our recommendation to 'Buy' (Accumulate earlier) given recent correction in the stock price."
British luxury car maker JLR, which Tata Motors acquired as a sick company in 2008, sold a record 425,006 units of during 2013 in countries including India, China and the United States.