Tata Motors Stock Return: The stock of auto giants Tata Motors has also made a great recovery from the Corona crisis and is trading near the 1-year high. On March 24 last year, where the stock market had fallen drastically during the period of coronavirus epidemic, Tata Motors shares reached a record low of Rs 64. But now 11 months later, on 22 February 2021, Tata Motors is trading around Rs 310. That is, in 11 months, the stock has increased 5 times. Accordingly, the money of investors in the stock has also increased 5 times during this period. Further sentiments on the stock are looking better.
Rakesh Jhunjhunwala has also placed bets
Rakesh Jhunjhunwala included Tata Motors shares in its portfolio in the September quarter. He has 4 crore shares in the company. Jhunjhunwala bought Tata Motors shares when Tata Motors chairman N Chandrasekaran announced that the company would zero its debt over the next three years. In the same quarter, the company’s losses were reduced on a quarterly basis. By the end of September, Tata Motors’ stock was trading around Rs 130. Today, Tata Motors shares have reached close to Rs 310. In February itself, the stock also touched a 1-year high of Rs 341. The stock has grown more than double since September.
Great December quarter
The third quarter of FY 2021 has been better for Tata Motors. The company’s profit in the December quarter increased by 67.2 percent to Rs 2906 crore. During this period, the company’s revenue grew by 5.5 percent to Rs 75,654 crore. After the reduction of the coronavirus infection, when the government removed the ban, the sales of the auto sector increased, which benefited Tata Motors. The company’s profit also increased due to good demand in the festival season. The company’s profit in the same quarter a year ago was Rs 1738 crore. Earlier, in the September 2020 quarter, the company had a loss of Rs 314 crore due to coronavirus infection.
The luxury car brand like Jaguar is owned by Tata Motors. Jaguar Land Rover (JLR), the luxury car unit of the company, has received the highest revenue. Its sales increased by 13.1 percent compared to the September quarter but still it is 9 percent lower than before the coronavirus.