Shares of Tata Motors surged 4% on Monday, hitting a more than 6-year high, after the automaker reported a strong fourth-quarter profit. At 9:20 am, Tata Motors shares were trading 4.25% higher at Rs 488.85 per share on the National Stock Exchange (NSE). The stock had earlier opened at Rs 474.15, touching an intraday high of Rs 496.50, its highest level since October 10, 2013.
The automaker reported a consolidated net profit of Rs 4,738 crore for the quarter ended March 2021, compared with a net loss of Rs 1,945 crore in the corresponding period last year. Its total revenue for the quarter was Rs 81,885 crore, up from Rs 75,876 crore in the year-ago period.
Analysts at Prabhudas Lilladher said that the strong performance was driven by higher sales volumes, better-than-expected operating margin, and higher other income. They said that the company’s outlook for the next two quarters remains positive, and they maintain a ‘buy’ rating on the stock with a target price of Rs 550.