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Shares of Tata Motors gained on record Jaguar Land Rover global sales in 2017. The stock jumped as much as 2.2 per cent to Rs 443, highest since November 9.
Jaguar Land Rover's sales rose 7 per cent to a record 621,109 vehicles in 2017 but Britain's biggest carmaker said it faced tough conditions in its home market due to weakening consumer confidence and a planned diesel tax rise on new cars.
The company has embarked on a major turnaround plan since being bought by the Tata group in 2008. This includes investment in new models and expansion of production with the aim of building around 1 million vehicles a year by the turn of the decade. It said growth in China, its largest market, and in the United States helped to offset difficult conditions in Britain and the rest of Europe, where the demand was flat.
Over the next three months, a series of launches are scheduled for JLR, and this should drive strong volume growth, Morgan Stanley says. It has kept “equal-weight” rating, and a price target of Rs 407.
Nomura analysts say JLR December global retail sales remained weak at 55,697 units, below the estimate of about 57,000 units. It has maintained “buy” rating with a price target of Rs 531.
About 28 of 40 brokerages have rated the stock as “buy” or higher, 9 “hold” and 3 “sell” or lower; their median price target is Rs 500, according to Thomson Reuters Eikon.
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