In November, the company achieved its fourth consecutive profitable quarter, marking a significant turnaround from the series of losses it had experienced since the beginning of 2021. Tata Motors’ total market capitalization stood at 3.146 lakh crore, surpassing Maruti Suzuki’s Rs 3.13 lakh crore.
Tata Motors has reclaimed its position as India’s most valuable automaker, a title it had lost to Maruti Suzuki in 2016. On Tuesday, the company’s shares surged by 5%, resulting in a market valuation of nearly $38 billion.
After a series of losses since the beginning of 2021, Tata Motors recorded its fourth consecutive profitable quarter in November. Its combined market capitalization stood at 3.146 lakh crore, surpassing Maruti Suzuki’s Rs 3.13 lakh crore.
The growing preference for SUVs among consumers has played a significant role in Tata Motors’ success in the passenger vehicles market. The company offers a wide range of options, allowing it to capture a larger market share.
Furthermore, Tata Motors leads the electric car segment in India, while Maruti Suzuki has yet to enter this market. According to Kranthi Bathini, a strategist at WealthMills Securities, Maruti’s conservative approach has hindered its progress, as it has failed to adapt to changing consumer behavior. Tata Motors, on the other hand, has capitalized on these changes and benefited from them.
Brokerage firms like Morgan Stanley and Motilal Oswal have given positive ratings to Tata Motors’ stock, citing its strong sales mix, particularly with models like Range Rover, Ranger Rover Sport, and Defender, which account for 62% of the wholesale.
Over the course of the last 12 months, Tata Motors has achieved an impressive increase of over 90%, outshining the broader market performance, where the main S&P BSE Sensex Index only managed to rise by 21%.