Tata Motors Share have attracted everyone by showing an up rate of 8%. JLR, British Division of the company, announced that they were expecting better financial result in the quarter to March 31, 2019. The stock jumped 7.37% to close at ₹187.15 on BSE. Intra-day, it gained 8.80% to ₹189.65.
JLR said it continued to execute turnaround strategy to deliver 2.5 billion euros (USD 2.81 billion) of cash flow improvements by March 2020. 15 of the 37 analysts covering the stock have “buy” or higher ratings, 18 “hold” and 4 “sell” or lower. The stock had declined 46.70 per cent this year up to Friday’s close. The shares of the company closed 7.37 per cent higher at Rs 187.15 on BSE.
Macquarie has given a target price of Rs 260 on the Tata Motors stock citing an increase in average incentives due to a rise in incentives on jaguar models. The brokerage expects JLR’s cost reduction plans to yield positive results in 2019. The upgrade in the stock price comes amid falling sales for the Indian auto behemoth.
In the US, Jaguar Land Rover total February sales reached 11,616 units, a 29 percent increase from 9,013 units in February 2018. Jaguar sales zoomed to 3,465 units, a 59 percent increase from 2,185 units in February 2018.
Why TATA Share Growing in Such Manner?
Boosted by the development, shares of Tata Motors gained as much as 7.51 per cent to touch an intra-day high of Rs 187.40 apiece on the Bombay Stock Exchange. Stocks of the auto major were currently trading at Rs 186.60, up 7.06 per cent, against previous close level of Rs 174.30 on the BSE.
It is to be noted that the company issued this statement after global rating agency S&P Global Ratings (S&P) downgraded the credit rating of JLR and its owner, Tata Motors, citing the growing risks of a no-deal Brexit and US import tariffs. S&P cut its rating on senior unsecured notes of JLR, Britain’s biggest carmaker, and Tata Motors to ‘B+’ from ‘BB-‘ with credit watch negative following its weaker than expected third-quarter results.