Shares of Tata Motors , India's most valuable carmaker, hit a record high on Monday, rising as much as 7.2%, after it reported a more than two-fold increase in third-quarter profit, driven by strong sales in its British luxury car unit, Jaguar Land Rover (JLR).

The stock, currently up 6.5%, is leading the Nifty Auto index and among top gainers on the blue-chip Nifty 50 Index, which are up 1.88% and 0.39%, respectively.

JLR, which accounts for two-thirds of its parent's revenue, posted a 22% uptick in revenue during the quarter.

Despite global demand being a concern, with JLR's strong order book, Tata Motors is on track to report strong margins for the current year, said analysts at Elara Capital. The brokerage also upgraded the stock to "accumulate" from "buy".

Jefferies analysts said JLR is set to benefit from the recent ramp-up and capacity expansion of Range Rover and Range Rover Sport models and easing chip acquisition costs.

The carmaker's margins are expected to remain healthy on account of steady demand for JLR coupled with market share gain in private vehicle and commercial vehicle segments, said Kotak Institutional Equities.

Its commercial vehicle segment continues to see margin expansion on account of lower discounts. Analysts at Prabhudas Lilladher expect the segment to continue to see margin expansion for the March quarter.

Tata Motors' consolidated net profit rose to 70.25 billion rupees ($846 million) in the three months ended Dec. 31 from 29.58 billion rupees a year earlier.

Thirty-one analysts covering the stock on average have a "buy" rating on it.

The stock, which is currently trading at a more than 2% premium to the median PT of 920 rupees, hit a record high of 941.9 rupees, as per LSEG data.

Shares of Tata Motors gained nearly 24% in the third quarter, outpacing a 15.04% rise in the Nifty Auto Index. ($1 = 83.0250 Indian rupees) (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami)