InvestorQ : What is driving the recent rally in the stock of Tata Motors?
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What is driving the recent rally in the stock of Tata Motors?

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Juvina Maggie answered.
1 month ago
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Tata Motors stock has rallied by over 10% on 07-Oct and scaled a fresh 3-year high on the back of strong business outlook. Leading brokerage house, Morgan Stanley, has upgraded the price target of Tata Motors to Rs.448 from their price target of Rs.298. What is more interesting is that Morgan Stanley expects the future value creation for Tata Motors to come from the India PV and CV business rather Jaguar Land Rover global business.

According to experts, Tata Motors is likely to enjoy the highest operating and financial leverage gains amidst the recovery in the economy in the passenger vehicles and the commercial vehicles segments. Even the Tata Motors DVR was up 7% and it has actually performed much better than the Tata Motors stock although that is largely on account of the huge DVR discount that it was trading in.

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