The maker of the Nano minicar and the owner of the luxury car
brand Jaguar, India's
), announced record profit this week as its stock hit a new high.
The Indian car manufacturer said that its earnings were $497
million in the quarter, up from $4.9 million last year, and that
its sales increased +37% to $6.4 billion.
The company attributed its gains to strong volume growth
across its entire line of cars, trucks and buses as well as a
surge of interest in its Jaguar Land Rover luxury unit.
Commercial vehicle sales increased +23% while passenger vehicle
sales rose +36%. The company's signature car, the Nano
subcompact, sold +53% more units than it did in the third quarter
of last year.
The company has been involved in a bit of a public relations
snafu recently due to reports of fire problems with the Nano. The
company reacted swiftly to the news and announced that it will
offer free safety upgrades to customers (it chose this over a
recall). Tata will begin contacting customers in the next few
weeks about installing new catalytic converter covers as well as
making other safety upgrades.
Tata Motors is up +8.4% this week on its positive quarterly
results. The stock closed at a record high Wednesday and, despite
yesterday's pullback, remains on a good clip. In total, shares
are up +26% Oct. 4. Buy this stock under $34.25 a share.