In the last three sessions, the stock has gained about 23 per cent. On Monday, it traded up 7.39 per cent at Rs 411.25 on BSE. Tata Motors DVR shares were up over 5 per cent at Rs 201.10.
Last week, brokerage house Morgan Stanley had revised its target price on Tata Motors to Rs 448 from Rs 298 earlier. Tata Motors is largely seen more as a global luxury play due to Jaguar Land Rover’s dominance in the company’s topline, but the broker believes the incremental upside surprise will come from its Indian business.
“We expect 2022-23 to be strong for Indian autos and Tata’s Indian business, and with its lean cost structure, refreshed model portfolio and high leverage,” it added.
This is despite an acute semiconductor shortage that has crippled the auto industry.
Jaguar Land Rover retail sales for the September quarter was constrained by the impact of the global semiconductor shortage on production, with wholesales for the period in line with July guidance, the company said last week.
“Underlying demand for Jaguar Land Rover products remains strong with order books at record levels,” it added.
Retail sales for the second quarter ending 30 September 2021 were 92,710 vehicles, 18.4 per cent lower than the 113,569 vehicles sold in Q2 last year. Retails were lower year-on year in most regions, including North America (-15.6 per cent), China (-6.3 per cent), Europe (-17.0 per cent), and in the UK (-47.6 per cent), but were up in the Overseas region (+10.0 per cent).
“Despite the impact of the semiconductor shortage on production and sales, the Company continues to see strong demand for its products with global retail orders at record levels in excess of 125,000 vehicles,” Jaguar Land Rover said in a release.
As of June 30, 2021, ace investor Rakesh Jhunjhunwala held 37,750,000 equity shares or 1.1 per cent stake in the company, which was worth Rs 1,552.46 crore. The company is yet to declare the shareholding for the September quarter.