Shares in Tata Motors rose to their highest level in more than 19 years
By Andrew C., 30 Aug, 2010. 0 Comments
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After Tata Motors Ltd. posted a first-quarter profit on demand for luxury SUVs and sedans, its shares increased to their highest level in over 19 years. Tata, the owner of Jaguar Land Rover, posted a net income of 19.9 billion rupees ($430 million) in the quarter that ends in June. A year earlier, it reported a loss of 3.3 billion rupees. Sales increased by 64% to 268.8 billion rupees. In Mumbai, Tata Motors gained 5.9% after Jaguar Land Rover benefited from an improvement in luxury-vehicle sales that also led to BMW AG and Daimler AG raising their profit forecasts.
Chairman Ratan Tata, who will retire in 2012, aims to open Land Rover factories in India and China. Vaishali Jajoo, a Mumbai-based analyst at Angel Broking Ltd., described the profit numbers to be good. Jajoo also said that Jaguar Land Rover's performance is substantially good. She asserted that analysts had predicted that profit will be between 11 billion rupees and 19 billion rupees.
Tata Motors, which is headed by Carl-Peter Forster, the former European head of General Motors Co., rose to 957.3 rupees, the highest since January 1991, according to data compiled by Bloomberg. Shares have increased by 21% this year, the third-best performance in the benchmark Sensex Index, which has advanced 4.3%.
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