Tata Motors stock hits record high following strong JLR sales

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The robust performance comes after JLR reported a year-on-year sales increase of over 97 percent for April-September, with the Defender model emerging as the best-seller. The impressive sales figures led to Tata Motors’ stocks surging by 4 per cent on Friday. This is in line with InvestingPro Tips, which indicate that the company’s revenue growth has been accelerating.

Both Q1 and Q2 of FY24 recorded significant sales, with Q2 posting a noteworthy 108% YoY growth with 1,308 units sold. Models like Range Rover, Range Rover Sport, and Defender contributed significantly to the total order book growth, accounting for 72% of it.

JLR India’s Managing Director, Rajan Amba, attributed this success to the company’s growing popularity and customer-centric new product launches. The company’s certified pre-owned business also expanded by 83%.

Tata Motors’ total domestic sales in September were reported at 82,023 units. While commercial vehicle sales rose by 12% YoY, passenger vehicle sales dipped by 6%. Electric vehicle sales showed significant growth, increasing by 57% including international markets.

Driven by high demand for Range Rover models and a robust PV sector, Tata Motors ended H1 FY24 with an order book that was 90 per cent higher YoY. This surge in retail demand and a thriving luxury automobile segment led to a combined net profit of Rs 3,203 crore in Q1 FY23-24. This marked Tata Motors’ first profitable quarter since Q4FY23. This is in line with another InvestingPro Tip, which suggests that the company’s net income is expected to grow this year.

The company’s revenue from operations rose by 42 per cent to Rs 1.02 lakh billion and EBITDA was Rs 14,700 crore for the quarter. Tata Motors stock outperformed the Nifty 50 returns of 8% with a year-to-date return of about 70 per cent. Both Nomura and Morgan Stanley maintain a positive outlook on Tata Motors shares.

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