Tata Motors Commercial Vehicles Surge 30% in a Month: Exports and Cash Flows Drive Rally

Tata Motors’ commercial vehicle business has seen a sharp rise in its share price, gaining around 30% over the past month. On Thursday, the stock touched a fresh high of about ₹403, rising nearly 4% during intraday trade. The rally comes at a time when the broader market and auto index have remained under pressure.

Sales Growth Boosts Investor Confidence

The key driver behind the stock’s rise is strong volume growth. In November, Tata Motors’ total commercial vehicle sales increased nearly 29% year-on-year to over 35,500 units. Growth was broad-based, with heavy commercial vehicles, light and intermediate trucks, and small cargo vehicles all reporting double-digit gains. Better fleet utilisation after the festive season supported domestic demand.

Exports and Market Leadership

Exports jumped sharply, rising over 90% year-on-year, highlighting strong overseas demand. 

Healthy Cash Flows and Lower Debt

In the September quarter, the company reported strong free cash flow of around ₹2,200 crore, supported by higher volumes and better working capital management. Management expects cash flows to remain positive in the second half as well. Lower debt levels have also reduced interest costs, improving overall financial strength.

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Tata Motors Passenger Vehicles Share Price Movement

Tata Motors Passenger Vehicles share price (NSE: TMPV) was trading at ₹345.20 around 12:54 pm on December 18, down marginally by 0.33% or ₹1.15 from the previous close. The stock opened at ₹346.35 and moved in a narrow range during the session, touching an intraday high of ₹347.45 and a low of ₹337.70, which also stands as its 52-week low. The company’s market capitalisation is about ₹1.27 lakh crore, while the 52-week high for the stock is ₹419.00.

Conclusion

Tata Motors’ recent stock rally is backed by solid fundamentals, strong sales growth, rising exports, healthy cash flows and a supportive demand environment. 

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