Tata Motors gained 6 percent on Wednesday after Jaguar Land Rover reported double-digit growth in overall sales in the United States. In November, Tata Motors' subsidiary Jaguar Land Rover (JLR) sold 12,472 units in the US, an increase of 6.2 percent year-on-year. On a month-on-month basis, sales increased by 19.4 percent.

Share Market Live

NSE

The stock rose as much as 6 percent to Rs 167.65 per share on the BSE. At 1:07 PM, the stock was trading 4.4 percent higher at Rs 165 as compared to a 0.5 percent or 192 points fall in the BSE Sensex at 40,482.

Land Rover sales grew by 11.3 percent to 9,514 units, while Jaguar sales dropped 7.5 percent to 2,958 units compared to the same month last year.

Overall US sales have also risen for the fourth consecutive month. Its sales in October stood at 10,443 units against 9,490 units in September, 8,700 units in August and 8,476 units in July.

However, Tata Motors on Sunday reported a 25.32 percent decline in total sales to 41,124 units in November. The company had sold a total of 55,074 units in the same month last year, Tata Motors said in a statement. Total domestic sales were down 25 percent at 38,057 units as compared to 50,470 units in November last year, it added.

CLSA in a recent report upgraded Tata Motors to 'buy' from 'sell' and raised its target to Rs 190 from Rs 120 per share. As per the brokerage, JLR business is bottoming out and its margin has started to recover after 4 consecutive years of contraction.

Indian business will likely remain weak in FY20-21, hence it cut the company's FY20 EPS but raised its FY21-22 earnings estimate by 4-16 percent. It added that equity infusion should help alleviate balance sheet pressure.

Disclaimer

: CNBCTV18.com advises users to check with certified experts before taking any investment decisions