Tata Motors zooms 50% so far in 2023, approaching record highs on brighter outlook

Tata Motors

It is anticipated that increased gross cash accruals and a strong liquidity position combined with management’s commitment on achieving zero net auto debt will result in significant improvements in measures for leverage and debt coverage.

In range-bound trading on Tuesday, shares of Tata Motors increased by 3% to a fresh multi-year high of Rs 582.60 on the BSE due to a better economic outlook. The S&P BSE Sensex, in contrast, was down 0.10 percent at 63,102 at 1:15 PM.

The price of the Tata Group’s stock for passenger and utility vehicles was nearly equal to the record high of Rs 606, attained on February 3, 2015. It has increased by 50% thus far in calendar year 2023, compared to the S&P BSE Sensex’s 3.2% gain.

The dividend has been approved by Tata Motors for the first time in six years. For FY23, it declared dividends of Rs. 2 per ordinary share with a face value of Rs. 2 apiece (at 100%) and Rs. 2.10 each ordinary share with the designation “A” (at 105%). The corporation has established July 29, 2023, as the record date for evaluating a member’s eligibility to receive a final dividend.

All business segments for Tata Motors are improving, including Jaguar and Land Rover (JLR), commercial vehicles (CVs), and passenger cars (PVs).

Due to aggressive launches, market positioning, product differentiation, cost savings, and investments in research and development (R&D), the company is seeing strong demand and is anticipated to produce higher operational efficiencies.

For the second consecutive quarter, JLR, PV, and CV businesses all recorded sequential margin improvement in Q4FY24.

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