The Tata Motors stock gained 5.5 per cent on Thursday at the bourses on Q2 numbers which were announced on Wednesday after market hours. The stock ended the day at Rs 284.10 on the BSE. The Tata-group company posted net profits of Rs 2,075 crore, up 10.5 per cent on a year-on-year basis mainly on the back of strong performance by the Jaguar Land Rover (JLR) business. Analysts said the company’s standalone performance seems to have bottomed out. They maintained that there is still some upswing in the stock left and it will continue to do well as the JLR numbers were “terrifically high”.
“Despite near-term slowdown, we expect improvement in the domestic industry and stellar performance at JLR in FY-14. The company’s management indicated healthy initial response for its new Range Rover as well as stable margins and pricing in China,” said Mitul Shah, analyst with Karvy Broking.
“JLR continues to witness the positive impact of currency and geographic mix, we expect the momentum to sustain driven by its new launch pipeline and ramp-up in China,” said a report on Tata Motors by Emkay Global Financial Services.