Tata Motors Ltd. maintained growth and profitability guidance for Jaguar Land Rover amid concerns of a new Covid-19 strain in the U.K.
“Our guidance of improved growth, profitability and cash flows in the second half of the year continues to hold,” the automaker said in an exchange filing.
U.K. Prime Minister Boris Johnson has imposed tougher regulations across a swath of England in an effort to rein in the mutant strain of coronavirus that's spreading quickly across the country. More than 16 million citizens across various parts of the country have already contracted the new variant.
Amid these concerns, shares of Tata Motors had dropped 9% on Monday and were the top laggards on the Nifty 50. But the stock has gained since then.
“Jaguar Land Rover has a comprehensive contingency planning and actions in place to respond to ongoing Covid challenges and disruption. This is subject to constant review,” Tata Motors said. The recent issues at U.K. ports, according to the filing, have had no impact on the luxury carmaker.
Shares of Tata Motors gained as much as 5% to Rs 177.65 apiece on Thursday. Of the 33 analysts tracking the company, 18 have a ‘buy' rating, six suggest a ‘hold' and the rest recommend a ‘sell'. The stock is trading 9.7% higher than its 12-month Bloomberg consensus price target of Rs 158.3 apiece.
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