The rise in sales was on the back of continued improvement in chip supply and increased production levels.
Brokerage firm CLSA was bullish on Tata Motors and advised investors to ‘buy’ the stock with a price target of Rs 690, indicating an upside of more than 11 percent from the stock’s previous close on Friday.
CLSA said it expected Free Cash Flow of £1.5 billion/£1.7 billion in financial year 2024-2025 for JLR driven by 18 percent and 7 percent growth in wholesale volumes (including China JV) and an improved margin profile.
Another global financial services firm JPMorgan remained ‘neutral’ on Tata Motors. However, it raised the price target for the stock to Rs 540 per share.
JPMorgan said JLR wholesale volumes were in-line with estimates and the Tata Motors stock already appeared to be baking in optimistic outcomes.
It pointed out that the company’s retail sales volume also grew sharply to but the order book declined by 15,000 units to 1,85,000 compared with the previous quarter.
Sum of JLR’s ‘retail + changes in order book’ was flat at 87,000 in the June quarter compared with the previous quarter. Notably, this was below 1,00,000 for the fourth consecutive quarter, said JPMorgan.
