Tata Motors shares rally after Goldman Sachs double upgrades Tata group stock to 'buy', raises target by Rs 70

Tata Motors shares rallied on Monday after Goldman Sachs double upgraded the Tata group auto giant to 'buy' from 'neutral' and raised its target price for the stock by Rs 70. The brokerage's action came about after a quarterly data report by Tata Motors showed a 24 per cent jump in its British subsidiary Jaguar Land Rover's wholesales amid improving global availability of semiconductor chips. 

Tata Motors, a Rekha Jhunjhunwala stock, rallies after Goldman Sachs upgrade

The Tata Motors stock gained by as much as Rs 35.6 or 8.1 per cent to Rs 473.1 apiece on BSE during the session, before settling 5.4 per cent higher for the day at Rs 461.1 apiece.

After market hours on Thursday, Tata Motors reported an eight per cent year-on-year increase in group global wholesales to 3,61,361 vehicles in the quarter ended March 2023. The sales figure included Jaguar Land Rover, whose popular models include Range Rover Evoque, Range Rover Sport, Discovery Sport and Jaguar F-PACE. 

Global wholesales of passenger vehicles (PVs) stood at 1,35,654 units in the three-month period, including electric vehicles (EVs), marking growth of 10 per cent compared with the year-ago period, according to Tata Motors. Total global wholesales of Jaguar Land Rover (JLR) stood at 1,07,386 vehicles in the quarter, including CJLR sales of 12,737 vehicles. CJLR is a joint venture between JLR and Chery Automobiles.

According to BofA Securities, the Jaguar Land Rover volumes were solid with a better-than-expected booking run rate. The brokerage sees a case for accelerated de-leveraging for the company.

Tata Motors shares: Historical performance

Tata Motors shares have risen 17 per cent so far in 2023, sharply outperforming the Nifty benchmark index which has declined three per cent.

Rekha Jhunjhunwala portfolio

Tata Motors is part of the portfolio of Rekha Jhunjhunwala, wife of late legendary investor Rakesh Jhunjhuwala. As of December 31, 2022, Rekha Jhunjhunwala held a 1.58 per cent stake in Tata Motors.   

ALSO READ: A quick recap of Rakesh Jhunjhunwala's top stock bets

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