BENGALURU, Nov 3 Reuters Shares of Tata Motors rose as much as 4.6 on Friday, amid hopes of a turnaround after the Indian auto maker raised its luxury car unit Jaguar Land Rover39;s JLR margin outlook and reported its fourth consecutive quarter of profit.

The shares pared some of the early gains and were last up 2.7. The stock is among the top gainers on the bluechip Nifty 50 and Nifty Auto indexes, which were up 0.7 and 1, respectively as of 1024 a.m. IST.

Easing supplyside issues that had hurt JLR39;s production and stabilising cost pressures that fuelled Tata39;s expenses in the domestic business will help the company39;s recovery, Motilal Oswal said.

Strong JLR sales are key to Tata39;s earnings as the British division accounts for twothirds of its parent39;s revenue.

JLR39;s revenue growth is likely to be driven by production rampup and the huge pending order book 168,000 units, particularly for high realisation and margin models, Nuvama Institutional Equities said in a note.

Tata Motors, India39;s largest carmaker by revenue, upgraded JLR39;s fullyear earnings before interest and taxes EBIT margin forecast to around 8 from 6 on Thursday.

Nuvama and Motilal Oswal each rate the stock buy.

With easing inflation and increased federal spending on infrastructure, Nuvama analysts expect domestic sales of its commercial vehicles to increase. Further, passenger vehicles will likely get a boost from the shift to electric models and marketing push, they said.

The…