Tata Motors becomes the third Tata group company to cross Rs 1 lakh crore market cap

Tata Motors Share Price: Tata Motors became the third Tata company to cross the market capitalization of Rs 3 lakh crore after the company’s share price reached a new high in the stock market with Tata Motors DVR.

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

Yesterday, Tata Motors informed BSE that a meeting of the Board of Directors of the company is scheduled on 02/02/2024 to consider and approve the audited standalone financial results and unaudited consolidated financial results (with limited review) for the third quarter. Is. and the nine months ended December 31, 2023.

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

Other analysts are also bullish on Tata Group shares.

Shiju Koothupalakkal – Technical Research Analyst, Prabhudas Lilladher said, “After a clear breakout above Rs 735, the stock has once again maintained a strong bullish bias and the next target is seen at Rs 820 levels and above that After this, with strength it can reach the area of ​​Rs 880. Near term support lies at Rs 760 area.

Gaurav Bissa, Vice President, Incred Equities said, “Tata Motors saw an 8-year breakout at Rs 550-560 levels on the monthly charts and has since moved strongly higher. It has shown strong performance compared to its 4-wheeler peers. While the stock has upside potential, short-term traders are advised to book profits. Long term targets are seen around Rs 900 level where cluster count targets are placed on point and figure charts.’

The Tata group company reported a net profit of Rs 3,764 crore in the September quarter, compared to a loss of Rs 944.61 crore in the September 2022 quarter. Revenue rose 32% to Rs 1.04 lakh crore in the second quarter as against Rs 78,846 crore in the same period last fiscal. Operating margin in percentage terms increased to 13.19% in the September quarter from 7.67% in the September 2022 quarter.

EBITDA grew 86.4% to Rs 14,400 crore.

Earnings per share rose to Rs 9.81 in the second quarter from (minus) Rs 2.47 in the September 2022 quarter. The debt-equity ratio fell to 2.23 in the second quarter of this financial year from 5.21 in the September 2022 quarter.