Tata Motors Limited witnessed a notable surge in its stock price by x% following the robust sales performance of its British luxury subsidiary, Jaguar Land Rover (JLR), prompting positive sentiments among brokerages.

Market analysts anticipate JLR's profit margin for the quarter to hover around 9.1 per cent, marking an improvement from the previous quarter's 8.8 per cent.

The stock of Tata Motors climbed by 1.3 per cent to reach Rs 1,026, extending its gains on April 9, after the announcement of JLR's fourth quarter retail sales, which exhibited an impressive 11 per cent year-on-year growth, totalling 114,038 units and surpassing market expectations.

Despite this optimistic outlook, analysts express a degree of caution regarding margins due to the prevailing product mix dynamics.

The remarkable uptick in JLR sales is attributed to escalated production levels coupled with sustained global demand.

Notably, retail sales soared by 32 per cent in the UK, 21 per cent in North America, and 16 per cent internationally compared to last year.

However, JLR experienced a decline of 9 per cent in sales in China, one of its key markets, and a marginal 2 per cent dip in Europe, as revealed in a recent business update.

Wholesale volumes for the March quarter reached 110,190 vehicles, reflecting a substantial 16 per cent increase from the previous year.

Among the prominent brokerages, Macquarie has accorded Tata Motors' stock an "outperform" rating, setting a price target of Rs 1,028 per share.

The stock has already surpassed Macquarie's target, reaching an all-time high of Rs 1,065.

While Macquarie acknowledges JLR's impressive performance in Q4 FY24 regarding wholesale figures, it anticipates a flat EBITDA margin quarter-on-quarter due to factors such as a slight decrease in the share of premium models and heightened incentive spending.

Echoing a bullish sentiment, Morgan Stanley maintains an "overweight" recommendation on Tata Motors' stock with a target price of Rs 1,013.

Analysts from Morgan Stanley note that the product mix during the quarter was weaker, primarily driven by lower sales of premium models.

They anticipate JLR's profit margin to improve to approximately 9.1 per cent, compared to the previous quarter's 8.8 per cent.

Additionally, Nomura has expressed a "buy" sentiment on Tata Motors' stock, setting a target price of Rs 1,057, suggesting a potential upside of over 4 per cent from the previous closing price of Rs 1,013.

Nomura's assessment forecasts JLR to generate a free cash flow (FCF) ranging between GBP 600-700 million in the last quarter, which is expected to aid in reducing the net debt to below GBP 1 billion.

As of 9:20 am, the stock was trading at Rs 1,029 on the National Stock Exchange, reflecting a 1.6 per cent increase from the previous close.

Tata Motors stock has exhibited an impressive rally of over 28 per cent in the last three months, underscoring investor confidence in the company's growth trajectory.