Tata Motors to launch India’s most awaited small car

On Feb 26, Tata Motors announced they would launch Nano on Mar 23. Tata Motors stock surged 17% in last 11 trading sessions. There were reports on production constraints & delivery issues marred stock price last week. Stock fell 7% in last 3 trading sessions. On Mar 20, stock lost 6.5% on heavy volumes, closed at Rs 160. Analysts expect stock to surge post launch as overwhelming response is likely for Nano. The stock was decimated by 75% from its 52-week high of Rs 664, underperforming the auto index.Tata Motors has debt of Rs 6,280 crore till Mar 31 while 2008 Nano launch may provide some relief. Nano bookings is expected to add Rs 400-500 crore. It may boost the stock if it matches up in terms of car performance & demand-supply consistency. Reports suggest an overwhelming response to Nano in semi-urban & rural areas, could boost the stock.

No related posts.