Tata Motors most valuable auto company
NEW DELHI: Homegrown Tata Motors has become the most valuable auto company on Dalal Street as its market capitalisation (m-cap) on Tuesday surpassed the m-cap of country’s largest carmaker Maruti Suzuki (MSIL).
At the end of Tuesday’s session, combined m-cap of Tata Motors and its DVR (Differential Voting Rights) stood at Rs 3.16 lakh crore as against Maruti’s m-cap of Rs 3.13 lakh crore. Bajaj Auto is India’s third most valuable auto company.
Tata Motors shares have surged over 91% in past one year on the back of improving Jaguar Land Rover (JLR) business and expansion of its electric vehicle (EV) division. In comparison, Maruti Suzuki shares have gained about 12% in the last one year.
Its shares surged 5% intraday on Tuesday to an all-time high of Rs 886 ahead of its Q3FY24 results. Analysts tracking the auto sector believe multiple factors are triggering Tata Motors’ share. The most important one is its British subsidiary JLR delivering its highest wholesale volume in 11 quarters during the recently concluded October-December period. Add to it, JLR’s order book remained strong with 148,000 client orders at the end of the third quarter.
“We believe while JLR will continue to see a healthy recovery, growth will moderate in Tata Motors’ PV and CV businesses in the coming years due to normal base and slowdown in the lower-end PV and LCVs,” said brokerage Motilal Oswal in a recent report.
Tata Motors’ strong leadership position in domestic electric car market and its decision to launch more mass-market EVs is said to be fuelling demand for its shares. “I believe Tata Motors has an early entrant advantage. While the sales growth pace of its ICE-powered passenger vehicle and commercial vehicles may remain under pressure in the near future, demand for its EV will remain healthy. Combined with a resurgence in JLR deliveries, it won’t be a surprise if the stock hits a four-digit market this year,” said a senior market analyst requesting not to be named.