Ignoring Quarterly Falling Profit, Investors Look For Potential Growth In Tata Motors’ New Models
Tata Motors Ltd. reported Friday that its quarterly net profit dropped by 57% to 22.36 billion rupees ($333.7 million), from 52.31 billion rupees in the same period last year, due to weaker earnings at its UK subsidiary, Jaguar Land Rover (JLR) unit. JLR announced a 9.2% growth in revenue in the three months ended June 30 compared to a year ago thanks to higher sales, but also posted a 38% fall in net profit as a result of the sharp weakening post-Brexit pound.
However, investors seemed indifferent with the Mumbai-based auto maker’ June quarter results as they focused on the strong growth in JLR sales and some new models it launched earlier in the year which have been received well in the market such as F-Pace, XE and Evoque Convertible.
Buy Stop at 38.80, Take profit at 39.20, Stop loss at 38.60