TaMo rides high on JLR volume, margin expectations

From its lows in December, the stock of Tata Motors is up about 15 per cent.

-  RAM PRASAD SAHU

The gains came on the back of better than expected December volumes in its UK-based subsidiary Jaguar Land Rover (JLR).

This coupled with gradual recovery in the global passenger vehicle demand, improving profitability due to product mix and lower commodity costs are expected to be key positives for the company.

The main trigger for the stock is the volume trajectory for JLR. Its wholesale volumes in the December quarter, excluding the China joint venture, grew 27 per cent over the year ago quarter to 101,043 units.

The volumes on the back of an easing supply situation was the company's highest wholesale performance in the past eleven quarters.

Growth was led by Range Rover Sport (49 per cent higher) followed by Defender at 14 per cent and Range Rover (12 per cent).

Wholesales volumes year-todate came in at 291,113 units, up 28 per cent y-o-y.