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Updated January 18th, 2024 at 14:22 IST

Tata Motors surges after crossing Rs 3-trillion market cap

The company's shares, along with Tata Motors DVR, soared to a new high, propelling their combined market cap to Rs 3.02 lakh crore in intra-day trade.

Business Desk
Tata Motors market cap
Tata Motors market cap | Image:Tata Motors
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Tata Motors market cap: Tata Motors has become the third Tata Group company to achieve a market capitalisation exceeding Rs 3 lakh crore after Tata Consultancy Services and Titan Company. The company's shares, along with Tata Motors DVR, soared to a new high, propelling their combined market cap to Rs 3.02 lakh crore in intra-day trade.

Financial performance and market cap milestone

The impressive market cap milestone for Tata Motors is underpinned by its robust financial performance. In the September quarter, the company reported a net profit of Rs 3,764 crore, marking a significant turnaround from the loss of Rs 944.61 crore in the corresponding quarter of the previous fiscal year. Revenue climbed by 32 per cent to Rs 1.04 lakh crore, and the operating margin increased to 13.19 per cent, reflecting the company's financial resilience.

Tata Motors' market cap achievement places it in the 22nd position in the overall market cap ranking. The stock has outperformed the market, surging 24 per cent in the past three months, driven by strong expectations of earnings growth.

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Jaguar Land Rover and Commercial Vehicle segment

Tata Motors JLR

The stellar performance is attributed to healthy volumes in Tata Motors' UK-based subsidiary, Jaguar Land Rover (JLR). The company's order book reflects strong demand, with 148,000 client orders at the end of Q3FY24, showcasing the desirability of vehicles such as Range Rover, Range Rover Sport, and Defender.

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While the commercial vehicle (CV) segment witnessed a pause in growth during Q3FY24, the management expects demand to rebound in the March quarter (Q4FY24) due to government initiatives, economic growth outlook, and the company's demand-pull strategies.

Record-breaking performance in Passenger Vehicle segment

Tata Motors has experienced exceptional growth in the passenger vehicle (PV) segment, posting its highest-ever sales in 2023. With 553,000 units sold, the company maintained its leadership in the compact SUV segment and achieved strong growth in hatches. The PV industry is expected to witness its highest-ever sales in CY23, and Tata Motors remains optimistic about sustaining growth with new product launches scheduled for CY2024.

Tata Motors expands electric vehicle portfolio with Punch EV

Image: Tata Punch EV

In a strategic move toward electrification, Tata Motors unveiled the Punch EV, an electric SUV, in the Indian market. Priced between Rs 10.99 lakh and Rs 14.99 lakh, the Punch EV is built on the company's new Pure EV Architecture, known as acti.ev. The vehicle offers two battery options - 25 kWh and 35 kWh - providing a driving range of up to 421 kilometers, addressing concerns around range anxiety.

Shailesh Chandra, Managing Director of Tata Motors, highlighted the company's commitment to electric mobility, stating, "We plan to introduce more EV models," signalling a promising future for Tata Motors in the electric vehicle segment.

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Published January 18th, 2024 at 13:25 IST

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