This stock gained 30% in 4 sessions, what is the reason?

Multibagger Stock: The company’s stock touched a new 52-week high on Tuesday after Tata Motors reported a 24 per cent rise in global wholesalers during the September quarter. The Tata group’s stock has gained 30 per cent in four sessions. The company’s shares closed at Rs 336 on BSE on 6 October 2021.

The shares of the company are trading above the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 209 per cent and 129.1 per cent in one year since the beginning of this year. The stock has gained 21 per cent in a week.

Tata Motors Group’s global wholesale sales rise
Tata Motors Group’s global wholesales grew 24 per cent to 2,51,689 units in Q2FY22, including Jaguar Land Rover. Global wholesale sales of all commercial vehicles of Tata Motors and Tata Daewoo range grew by 57 per cent to 89,055 units in Q2FY22, while sales of passenger vehicles grew by 11 per cent year-on-year to 1,62,634 units .

Global wholesale sales for Jaguar Land Rover stood at 78,251 vehicles (JLR numbers for Q2FY22 include CJLR quantities of 14,219 units). Jaguar’s wholesales for the second quarter stood at 13,944 vehicles, while Land Rover’s wholesales for the quarter stood at 64,307 vehicles.

On 8 October, Tata Motors said that the underlying demand for Jaguar Land Rover products remains strong with the order book at record levels. The firm said that despite the impact of semiconductor shortages on production and sales, the company continues to drive strong demand for its products, with global retail orders hitting a record high of over 1,25,000 vehicles.

After this, the auto company’s shares jumped 9.1 percent to reach a 52-week high of Rs 417.3 on October 11. The stock has risen almost seven times from its lockdown low of Rs 63.60 on March 24, 2020.

What do brokerage firms say?
On October 9 this year, ICICI Direct had given a ‘Buy’ rating for the stock with a target price of Rs 450. Motilal Oswal has given a target price of Rs 460 for Tata Motors. It said, “All three businesses of the company are on the path of recovery. Indian commercial vehicle business will see a cyclical recovery, passenger vehicle business is undergoing structural reforms.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

Read also:

Multibagger Stock Tips: This big decision of Modi government will strengthen these 5 defense stocks, know about them

Multibagger Stock Tips: This banking stock made investors rich! Your 1 lakh became 1.63 crores, know how?