Tata Motors finally sees acche din

Finally, there is some good news for Tata Motors stock. On Friday’s trade, while the market is trading in red, shares of Tata Motors were trading higher by 2.4 per cent.  The reason for such outperformance is the company's US sales data for JLR.


 
The sales of JLR in the US have increased by 24 per cent at 14,079 units compared to 11,394 same periods last year. Sales of Land Rover in the US market have increased by 33 per cent on yearly basis to 10,617 units against 7,980 units in the same period last year.

These figures have provided some respite to the company after a dismal domestic sales figure for the month of December 2018. Overall sales both domestic, as well as exports, declined by 8 per cent on a yearly basis. The worst impact or fall was visible in the commercial vehicle segment. In terms of the market, the company's export performed worse than domestic sales.

Shares of Tata Motors in the last one year has hugely underperformed the broader market, it has declined by 60 per cent in the last one year, while Nifty in the same period is up by 4.4 per cent.  Therefore, going forward, if these numbers sustain, we may see some catch up from Tata Motors.