New Delhi: Shares in Tata Motors soared Friday on the back of a rebound in global sales of the high margin Jaguar Land Rover luxury models.
The company reported a 35 per cent year-on-year jump in JLR sales at 30,094 units in May. The Range Rover Evoque and the 12MY Jaguar product drove sales. Jaguar sales for the month were 4,342, higher by 3 per cent, while Land Rover sales were 25,752, higher by 42 per cent.
Shares of the company traded 4 per cent higher at Rs 236.15 on the BSE, outperforming the BSE auto index, which traded 1.5 per cent higher at 12.08 p.m. Tata Motors shares have plunged 12 per cent in the past month against a 5 per cent jump in the BSE benchmark over concerns of slowdown in JLR sales.
In April, JLR sales stood at 25,143 units against expectations of around 31,000 units.
The British luxury brand, which Tata bought for $2.3 billion in 2008, accounted for over 95 per cent of its profit in the quarter to March 31, as sales grew by 48 per cent.
Meanwhile, Ratan Tata, chairman of Tata Motors, bought 4.25 lakh shares in the company Thursday. Investors view this as a positive for the company. It also indicates that the stock price might have bottomed in the short term. Tata bought the shares for Rs 9.94 crore at Rs 233.87 apiece.
The company reported a 35 per cent year-on-year jump in JLR sales at 30,094 units in May. The Range Rover Evoque and the 12MY Jaguar product drove sales. Jaguar sales for the month were 4,342, higher by 3 per cent, while Land Rover sales were 25,752, higher by 42 per cent.
Shares of the company traded 4 per cent higher at Rs 236.15 on the BSE, outperforming the BSE auto index, which traded 1.5 per cent higher at 12.08 p.m. Tata Motors shares have plunged 12 per cent in the past month against a 5 per cent jump in the BSE benchmark over concerns of slowdown in JLR sales.
In April, JLR sales stood at 25,143 units against expectations of around 31,000 units.
The British luxury brand, which Tata bought for $2.3 billion in 2008, accounted for over 95 per cent of its profit in the quarter to March 31, as sales grew by 48 per cent.
Meanwhile, Ratan Tata, chairman of Tata Motors, bought 4.25 lakh shares in the company Thursday. Investors view this as a positive for the company. It also indicates that the stock price might have bottomed in the short term. Tata bought the shares for Rs 9.94 crore at Rs 233.87 apiece.
