Tata Motors DVR Jumps 15% To Record High After Board Okays Swap With Ordinary Shares
The DVR shareholders will receive seven ordinary shares for every 10 DVR shares held.
Shares of Tata Motors Ltd. and Tata Motors A Shares Ltd. hit a record high in trade on Wednesday after the automaker's board approved the NCLT scheme of arrangement for the cancellation of 'A' Ordinary Shares or 'differential voting rights' shares.
The company will cancel DVR shares and issue ordinary shares. The DVR shareholders will receive seven ordinary shares for every 10 DVR shares held. The shareholding of the promoter and promoter group will decline by 3.16% post the DVR swap.
Tata Motors's June-quarter net profit rose to Rs 3,203 crore, beating analyst estimates of Rs 2,552 crore. The company's revenue also beat estimates by rising 42% to Rs 1,02,236 crore, as compared to Rs 1,01,290 crore expected from the analysts polled by Bloomberg.
Tata Motors Q1 FY24 Results (Consolidated, YoY)
Revenue up 42% at Rs 1,02,236 crore vs Rs 71,935 crore (Bloomberg estimates Rs 1,01,290 crore).
Ebitda up 448% at Rs 13,218 crore vs Rs 2,413 crore (Bloomberg estimates Rs 11,965 crore).
Ebitda margin at 12.9% vs 3.4% (Bloomberg estimate: 11.8%)
Net profit at Rs 3,203 crore vs net loss of Rs 5,007 crore (Bloomberg estimate: Rs 2,552 crore).
Shares of Tata Motors rose 2.46% to Rs 655.15 apiece as of 9.34 am, compared to 0.38% advance in the NSE Nifty 50. The stock advanced as much as 4.06% intra-day to hit an all-time high of Rs 665.4 apiece.
The stock has risen nearly 68.6% year-to-date. The total traded volume stood at 9.8 times its 30-day average. The relative strength index was at 77, implying that the stock maybe overbought.
Out of the 35 analysts tracking the company, 28 maintain a buy rating on the stock, three recommend a hold and four suggest a sell, according to Bloomberg data. The average calculated from the 12-month price target given by analysts implies a potential upside of 1.4%.
Tata Motors DVR shares rose 14.98% to Rs 430.5 apiece as of 9.34 am, compared to a 0.38% advance in the NSE Nifty 50. The stock rose as much as 16.72% intra-day to hit an all-time high of Rs 437 apiece.
The stock has risen nearly 108.3% year-to-date. The total traded volume stood at 52.1 times its 30-day average. The relative strength index was at 92, implying that the stock maybe overbought.
One analyst tracking the company maintains a buy rating on the stock, according to Bloomberg data. The average calculated from the 12-month price target given by analysts implies a potential downside of 16.3%.
