Tata Motors share price up 2% after October sales jump 27%; Citi, CLSA retain 'buy'

Tata Motors share price was up more than 2 percent in the morning trade on November 3 after the auto major declared its sales numbers from the month of October.

The company reported a 27 percent growth in domestic sales to 49,669 units in October. It had sold 39,152 vehicles in October 2019, Tata Motors said in a statement.

Passenger vehicle (PV) sales during the month surged 79 percent to 23,617 cars as compared to 13,169 units in October 2019.

Commercial vehicle sales were up 2 percent to 28,472 vehicles in October as against 28,002 vehicles in the year-ago period, Tata Motors said. Commercial vehicle domestic sales stood at 26,052 in the previous month. It was 25,893 units in October 2019, the statement said.

Commercial vehicle exports grew 20 percent during October to 2,420 units against 2,019 a year ago, according to the statement.

The stock was trading at Rs 135.70, up Rs 2.85, or 2.15 percent at 1049 hours. It touched an intraday high of Rs 137.35 and an intraday low of Rs 134.50.

Research and broking firm ICICIdirect has a "buy" rating on the stock with a target of Rs 165 per share.

Tata Motors posted a consolidated loss of Rs 314.5 crore in the quarter ended September 30 against a loss of Rs 216.56 crore in the year-ago period. Revenue from the passenger vehicle segment increased 86.3 percent YoY, with the achievement of EBITDA breakeven in Q2.

Citi has kept a "buy" rating with the target at Rs 185. According to Citi, the Q2 was ahead of estimates. CLSA has raised its FY21-23 EBITDA forecasts by 2 percent and maintained a "buy" rating with a price target at Rs 220.