Tata Motors Rallies For Eighth Day, Hits Fresh 52-Week High

Tata Motors shares jumped as much as 2 per cent on Wednesday to hit a fresh 52-week high of Rs 598.40 after the automaker bagged orders for over 5,000 buses from 25 state/city transport undertakings across the country. 

Tata Motors said this order was more than 80 per cent higher compared to last year's order. 

With today's gains Tata Motors shares have rallied nearly 19 per cent in last eight trading sessions, following its better-than-estimated revenues for the April-June quarter. 

Tata Motors also reported strong JLR sales in August. On the domestic side, sales of Tata Motors passenger vehicles rose 16 per cent year-on-year, though commercial vehicle sales edged lower. 

Analysts say that Tata Motors' domestic sales in the second half of the year could be much better than the first half. 

Meanwhile, global brokerage Citi has increased target price on Tata Motors to Rs 665 compared to Rs 530 earlier, which represents a potential upside of 13 per cent from yesterday's closing price. 

Citi said improving cash flows of Tata Motors will drive re-rating in the stock. Brexit will have positive impact on the earnings of Jaguar Land Rover over the long term, the brokerage added. 

Tata Motors shares closed 0.28 per cent lower at Rs 587.4 compared to 0.28 per cent fall in the broader Nifty.