Tata Motors Becomes 3rd Tata Group Company To Cross Rs 1 Lakh-Crore Market cap

Tata Motors Share Price: Tata Motors’ became the third Tata company to have crossed Rs 3 lakh crore market capitalisation after the stock price of the company along with Tata Motors DVR hit a new high on the bourses.

A combined market cap of Tata Motors (Rs 273,985 crore) and Tata Motors DVR (Rs 27,940 crore) touched Rs 3.02 trillion in intra-day trade today. Shares of Tata Motors (Rs 825.15) and DVR (Rs 549.50) are up 1.5 per cent, hitting a new high. In comparison, the S&P BSE Sensex was down 0.13 per cent at 73,231 at 09:28 AM.

Yesterday, Tata Motors informed the BSE that the meeting of the board of directors of the company is scheduled on 02/02/2024, for considering and approving the audited standalone financial results and unaudited consolidated financial results (With limited review) For the third quarter and nine months ended December 31, 2023.

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In a report last week, JPMorgan said that one of the primary reasons behind the upgrade on Tata Motors was the better-than-expected margin and free-cash-flow (FCF) delivery at Jaguar Land Rover (JLR). JLR reported a free cash flow of £300 million during the September quarter.

Other analysts are also bullish on the Tata Group stock.

Shiju Koothupalakkal – Technical Research Analyst, Prabhudas Lilladher said,” The stock after the clear breakout above Rs 735 has once again maintained the strong uptrend with next target visible at Rs 820 levels and thereafter with strength sustaining can achieve the Rs 880 zone. The near term support is at Rs 760 zone.”

Gaurav Bissa, Vice-President, InCred Equities said, “Tata Motors witnessed a 8-year breakout on the monthly charts around Rs 550-560 levels and has run up strongly since then. It has shown strong outperformance against its 4-wheeler peers. While the stock has potential to go higher, short term traders are advised to book profits. The long term targets are seen around Rs 900 levels where a cluster count target on point and figure charts is placed.”

The Tata Group firm reported a net profit of Rs 3,764 crore in the September quarter against a loss of Rs 944.61 crore in the September 2022 quarter. Revenue climbed 32% to Rs 1.04 lakh crore in Q2 against Rs 78,846 crore in the corresponding period of the preceding fiscal. Operating margin in percentage terms rose to 13.19% in the September quarter against 7.67% in the September 2022 quarter.

EBITDA surged 86.4% to Rs 14,400 crore.

Earnings per share rose to Rs 9.81 in Q2 against (minus) Rs 2.47 in the September 2022 quarter. Debt to equity ratio fell to 2.23 in Q2 of this fiscal against 5.21 in the September 2022 quarter.