Tata Motors share price records sharpest single-day surge in 6 months after CFO’s optimistic outlook on JLR

Shares of Tata Motors Ltd. registered a significant jump of 3.6% on Wednesday, March 12, hitting an intraday high of ₹671.90 on the NSE. This sharp rise came after the company’s Chief Financial Officer (CFO) held an analyst meet on Tuesday, where he provided a reassuring outlook on the company’s future trajectory. The surge also helped the stock snap a 2-day losing streak.

Biggest single-day gain in 6 months

Tata Motors’ stock posted its highest single-day move in 6 months, reflecting renewed investor confidence. The bullish sentiment followed the CFO’s assurance that Jaguar Land Rover (JLR) would meet its fourth-quarter EBIT margin guidance of 10% and that the company is on track to become net debt-free by the end of the financial year.

Key takeaways from the CFO’s commentary

The CFO’s discussion highlighted several positive developments for Tata Motors:

• Jaguar Land Rover’s strong financial outlook: The CFO reaffirmed that JLR remains on track to meet its quarterly targets, contributing to overall stability.
• Positive momentum in key markets: The US market continues to perform well, while Tata Motors is witnessing strong growth in China through JLR.
• European demand less challenging than expected: The European Union market conditions are improving, and the UK market is showing signs of recovery.
• Premiumisation strategy in progress: While the premiumisation of JLR and the Commercial Vehicles (CV) business in India is advancing well, the Passenger Vehicle (PV) segment requires further improvement.
• Domestic CV margin improvement on track: Tata Motors is successfully executing its strategy to enhance margins in the domestic commercial vehicle segment.
• Market share focus in the small CV segment: The company aims to strengthen its position in the small commercial vehicle category.

Tata Motors among top gainers on Nifty 50

Tata Motors emerged as one of the top-performing stocks on the Nifty 50 index on Wednesday. The stock’s 3.6% rally to ₹671.90 places it 10.82% above its 52-week low of ₹606.30, indicating strong investor confidence and renewed buying interest.

Conclusion

With positive guidance from the management and steady progress across key business verticals, Tata Motors remains a key stock to watch in the evolving automotive landscape.

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