The Tata Motors’ scrip surged to a record level on the bourses on Wednesday, after the owner of the Jaguar and Land Rover (JLR) marquees reported an unprecedented quarterly profit on surging sales in China and demand for the Evoque compact sports utility vehicle.
The share closed up 6.9 per cent at Rs 286.4 on Wednesday on the Bombay Stock Exchange (BSE), after gaining as much as 9.2 per cent.
The stock has advanced 61 per cent this year, to become the biggest percentage gainer on the 30-share benchmark sensitive index. This compares with the 17.8 per cent rise in the Sensex in the comparable period. The company is also the second-best performer in the last six months on the MSCI Asia Pacific Index.
JLR sales in China and Russia boosted profitability, as demand in emerging markets helped tide over slower growth in advanced ec-onomies.
The Evoque, which the company began delivering in September, accounted for 30 per cent of Land Rover’s 65,287 retail sales in the quarter, according to a company presentation.
“Tata Motor’s strong third-quarter results highlight the multiple positive tailwinds that continue to boost JLR’s earnings,” Abhijeet Naik and Nitij Mangal, analysts at CLSA Asia Pacific Markets said in a note to clients after the earnings announcement. Most of the positive factors “are likely to remain in place in the near term”.