Shares in the commercial vehicles manufacturer have seen strong gains over the last month as sales in the luxury Jaguar Land Rover models have picked up steadily. JLR contributes over 90 per cent to Tata Motors bottom line.
CLSA said the stock may rise to Rs 300 on the back of success of new Range Rover models, which will be launched soon. The success of new models has the potential to boost volumes by 40 per cent, CLSA said.
Shares in the company had witnessed strong selling pressure in May on the back of lower than expected JLR sales in April, but fears of lower growth have been unfounded.
Tata Motors stock was up for the fifth straight day today. At 12.15 p.m., it traded 0.4 per cent higher at Rs 247.10 on the NSE.