# India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-10 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Tata Motors Shares Soar on Strong Jaguar Land Rover Sales Meta Description: Tata Motors' stock rises over 8% as Jaguar Land Rover reports robust sales, forecast $1 billion free cash flow, boosting Nifty index. JLR leads revenue URL: https://financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-saleshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-10t081509z2lynxmpej39052rtroptp4tata-motors-stocks-1736814179396-compressed.jpg) BENGALURU (Reuters) – Shares of Indian automaker Tata Motors Ltd rose as much as 8.15% to a seven-month high on Monday after its luxury car unit Jaguar Land Rover (JLR) reported strong fourth-quarter sales and forecast free cash flow of about $1 billion. Tata Motors’s shares were the top gainer on India’s bluechip Nifty 50 index, which was up 0.33%, and pushed the auto index up 1.16%. JLR, on Thursday, reported a 24% jump in its wholesale volumes, excluding from China, in the January-March quarter, while retail sales grew 30% as chip and other supply constraints eased. [Tata Motors’](https://www.financedigest.com/jlr-parent-tata-motors-surges-nearly-20-on-tpg-fundraise-ev-plans.html "JLR parent Tata Motors surges nearly 20% on TPG fundraise, EV plans") global wholesales rose 8% in the quarter. JLR’s [sales contribute nearly 60% of Tata Motors’s revenue from operations and the British automaker’s strong sales in the October-December quarter had lifted the group to its first profit in two years](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study"). “The market is underestimating JLR’s EBIT (earnings before interest and tax) margin potential from upcoming phase of wholesale volumes,” Goldman Sachs said in a note. The brokerage [raised its recommendation on Tata Motors’ stock to “buy” from “neutral” to factor in JLR’s improving volume outlook, and raised its target price](https://www.financedigest.com/analysis-to-raise-prices-or-not-consumer-goods-makers-weigh-bets-on-buyer-strength.html "Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength") on the stock to 550 rupees. The average rating of the 32 analysts covering the stock is [“buy” and their median price](https://www.financedigest.com/4-for-the-price-of-1-what-you-can-buy-in-the-uks-top-northern-cities-for-the-price-of-a-london-pad.html "4 for the price of 1: What you can buy in the UK’s top northern cities for the price of a London pad") target is 520 rupees, according to Refinitiv data. Tata Motors’s [stock hit a high of 473.30 rupees on the day](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day"), before giving up some gains to trade up about 6% at 463.75 rupees in early afternoon trading. We remain confident of strong volume recovery and free cash flow generation in JLR, improving margins in the commercial vehicle business, and the ramp-up of electric vehicle volumes in the domestic passenger vehicles [business,” Axis Capital](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") said. (Reporting by Ashish Chandra in Bengaluru; Editing by Sohini Goswami) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---