Tata group stocks namely Tata Consultancy Services Ltd (TCS), Tata Motors Ltd, Tata Steel Ltd and Titan Company were among Sensex stocks trading higher in Tuesday's session. TCS led the Sensex gainers, rising 2.86 per cent to Rs 4,114.95, as UBS upgraded its rating on the stock to 'Buy', saying the market is ignoring a likely sector-leading sales growth ahead.
"TCS' current multiple premium over peers is below the historical average, and any outperformance makes the case for a re-rating, providing comfort in using the current multiple," UBS said.
Tata Motors was the second biggest gainer on Sensex, with the JLR owner rising 2.81 per cent to Rs 963. Kotak Institutional Equities recently met with Tata Motors. Kotak said Tata Motors expects JLR performance to remain steady driven by strong order book of 1,48,000 units. Also, the company highlighted that the business is on track to achieve the guided EBIT margin target of over 8 per cent during FY2024. The company expects the revenue and EBIT margins to improve to British 30 billion and 10 per cent, respectively, by FY2026E.
Tata Steel gained 1.09 per cent to Rs 144.15 while Titan Company was up 0.91 per cent to Rs 3,654 level.
In the case of Nifty, Tata Consumer Products Ltd, rose 0.79 per cent to Rs 1,185.95 crore. The top five Tata group stocks in terms of market capitalisation (m-cap) namely TCS, Tata Motors, Tata Steel, Titan Company and Trent, added a roughly Rs 59,000 crore to their market values in trade today.
In its Q3 review note on consumer discretionary sector, Sharekhan said Trent and Titan Company were outliners in the pack, delivering strong double-digit growth. Trent reported over 50 per cent YoY revenue growth and sharp margin expansion, it said.
"Despite the Shraadh period and a spike in gold prices, Titan’s Jewellery business registered a strong 23 per cent YoY growth in Q3. Excluding Trent and Titan, our retail universe’s revenues grew by 11 per cent," Sharekhan said.
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