BCCL
Tata Motors was the talk of the town this week as the Tata Group automaker surged on excitement of a strong business outlook. The stock rallied 10% yesterday, October 7 and 28% in the last one month.
All this despite the fact that its subsidiary, the international luxury brand Jaguar Land Rover (JLR), which contributed 82% to the company’s revenue at the end of June 2021 is still struggling with tepid sales and sputtering production due to the chip shortage.
Analysts believe its improving market share in the passenger vehicle (PV) segment is a good sign. “It [Tata Motors] is gaining market share in the PV segment whereas the JLR business is likely to show a strong recovery," Santosh Meena, head of research at Swastika Investmart, told Mint. Its share in passenger vehicles rose from 7% to 10% at the end of June this year, in a market dominated by Maruti, Hyundai and sister company Kia.
Apart from this, Morgan Stanley expects Tata Motors’ Indian business to post profits by the end of March 2023, after 8 years of losses.