Tata Motors shares surged 3.4% on Monday, reaching ₹732.55 on the Bombay Stock Exchange (BSE), as investors turned bullish ahead of the company’s fourth-quarter results and a potential dividend announcement.
The rally comes amid optimism surrounding Jaguar Land Rover (JLR), Tata Motors’ UK-based luxury vehicle subsidiary, and recent global trade developments. The stock has gained over 13% in May, rebounding 37% from its April 7 low of ₹535.75.
Key Drivers Behind the Rally
- Upcoming Q4 Results & Dividend Proposal – Tata Motors is set to announce its March quarter earnings and full fiscal year results on May 13. The Board of Directors will also review a dividend proposal for FY25.
- JLR Performance & Trade Agreements – Investor sentiment has improved following positive developments related to JLR. The UK and US governments have made progress on a bilateral trade agreement, revising tariff regimes for automobile exports.
- India-UK Free Trade Agreement (FTA) – The recently signed India-UK FTA is expected to reduce import duties on premium vehicles, potentially boosting JLR’s India sales.
- Demerger Plans – Tata Motors’ proposal to split its operations into two listed entities—one for commercial vehicles and another for passenger vehicles, EVs, and JLR—has been viewed as a value-unlocking strategy.
Market Performance & Outlook
Tata Motors shares have recovered swiftly, gaining 21% in the past month and 30% since April 7. Analysts expect strong Q4 earnings, driven by robust domestic demand, export recovery, and increased focus on EVs and premium vehicles.
