Tata Motors reaches all-time high driven by better sales data
What's the story
Tata Motors's stock continues its upward trajectory with a 1.5% increase today, reaching a new all-time high of Rs. 804. This comes after the company reported a 5% year-over-year growth in total sales for December, selling 77,855 units compared to 74,356 units a year ago. The stock has recorded gains in the past five sessions on the back of its strong growth prospects.
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Breakdown of sales figures
The sales figures surpassed CNBC-TV18's estimate of 75,233 units. In December, commercial vehicle sales rose by 1% year-over-year to 34,180 units, while passenger vehicle sales experienced an 8% jump to 43,675 units. For the October-December quarter, overall domestic sales increased by 3% compared to the previous year.
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Optimistic outlook for Q4 FY24
Tata Motors's Executive Director, Girish Wagh, noted in an official filing a pause in the year-over-year growth trend during Q3 FY24. Factors like a higher base effect, state elections, and a rural consumption slowdown contributed. Despite this, Wagh holds an optimistic view, foreseeing a demand upswing in Q4 FY24. He cites government emphasis on infrastructure, a promising economic outlook, and the company's proactive initiatives as catalysts for anticipated growth across major commercial vehicle segments.
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Tata Motors's stock performance
Tata Motors's shares have soared nearly 13% in the past month. It was the only Nifty50 stock to double in price in the year 2023. The automaker is a top pick for many brokerages due to its strong outlook for the Jaguar Land Rover business, promising prospects for electric vehicles, and increasing demand for SUVs as disposable incomes rise. Tata Motors is currently the largest EV player in India with a market share of 73%.