Tata Motors extends gain, stock soars 11% in three days


Tata Motors is trading higher by 2.5% at Rs 245, extending its 8.1% rally in the past two days, ahead of its Q1 result tomorrow. The stock opened at Rs 240 and has seen a combined 2.81 million shares changing hands on the counter so far on both the exchanges.

Analysts, on an average expect a 26% year-on-year (y-o-y) growth in consolidated net profit and 28% rise in net sales in Q1 FY13 over the previous year quarter.

“A strong Jaguar Land Rover (JLR) to drive Q1 earnings while standalone performance to remain significantly under pressure,” an analyst at Emkay Global Financial Services said.

“JLR operating margins may decline 30 bps on quarter-on-quarter basis (up 120 bps on year-on-year basis), while standalone business margins to be impacted by adverse product mix and lower operating leverage,” the analyst said in its report.

Meanwhile, Tata Sons, the promoter of Tata Motors has revoked part of its pledged shares last Friday.

“Tata Sons has released 18.5 million shares representing 2.17% of total equity, out of 25.48% pledge shares on August 3,” Tata Motors said in filing to BSE.