Tata Motors’ shares saw a notable rise of 2% in intraday trade following a positive credit rating update from Moody’s Investors Service. As of 11:53 am, shares of Tata Motors were trading at Rs 1,043.15 on the Bombay Stock Exchange, marking a 1.75% increase. This boost in share price comes as the company’s market capitalisation climbed to Rs 3.83 lakh crore.
Moody’s upgraded Tata Motors’ corporate family rating (CFR) to Ba1 from Ba3, maintaining a positive outlook on all other ratings. The credit rating agency also improved the ratings on Tata Motors’ senior unsecured instruments to Ba1 from Ba3, further underscoring the company’s strengthened financial position.
Despite a nearly 6% decline in the past five trading sessions, Tata Motors’ stock has experienced significant gains over the calendar year, rising 32% thus far, and a remarkable 72% over the past year.
For the first quarter of the 2024-25 fiscal year, Tata Motors reported a substantial 74% increase in consolidated profit after tax (PAT), reaching Rs 5,566 crore compared to Rs 3,203 crore in the same quarter of the previous year. Revenue from operations for the April-June quarter also saw an uptick, rising by 5.7% to over Rs 1.07 lakh crore.
The positive rating action from Moody’s reflects confidence in Tata Motors’ financial stability and growth prospects, contributing to the current uptick in its share price.