Shares of Tata Motors hit a fresh 52-week high of Rs 513, gaining 2% in intraday trade on Wednesday on strong earnings forecast for the January-March quarter (Q4FY24). Tata Group Passenger Cars and Utility Vehicles is scheduled to announce its fourth-quarter results on Friday, May 12.

Tata Motors has outperformed the market so far in the calendar year 2023 (CY23), surging 32%, compared with a 1% gain for the S&P BSE Sensex.

Tata Motors is expected to report healthy results in Q4FY23 due to a recovery in Jaguar Land Rover (JLR) wholesale volumes. Total sales in India were 252,000 units, up 10.4% quarter-on-quarter, and Jaguar Land Rover (including the Chinese joint venture) is expected to sell 108,000 units, up 16.6% quarter-on-quarter.

Ventura Securities has a “buy” rating on Tata Motors with a target price of Rs 715 per share for the next 30 months.

Tata Motors’ cash flow should strengthen over the next 12-18 months due to improved operating conditions in India and its 100% subsidiary Jaguar Land Rover Automotive Plc.

Solid earnings and free operating cash flow (FOCF) will support debt reduction. S&P added that if the India-based company successfully lists its subsidiary Tata Technologies Ltd as planned, it could further reduce its debt.