Investment plan

Tata Motors shares climb 3% on Rs 15K cr investment plan in electric vehicle segment

Shares of Tata Motors gained more than 3% today after a company official announced plans to invest Rs 15,000 crore in the electric vehicle segment over the next five years. The large-cap stock opened with a 3.11% gain at Rs 426.50 on BSE. Shares of Tata Motors hit an intraday high of Rs 428.5, up 3.59% from the previous close of Rs 413.65 on BSE.

The stock has lost 12.46% since the start of this year and is up 32.06% in one year.

Shares of Tata Motors are trading above the 5-day and 200-day moving averages, but below the 20-day, 50-day and 100-day moving averages.

A total of 10.71 lakh shares of the company changed hands, representing a turnover of Rs 45.39 crore. The company’s market cap rose to Rs 1.40 lakh crore on BSE.

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The stock reached a 52-week high at 536.50 rupees on November 17, 2021 and a 52-week low at 268.50 rupees on August 24, 2021.

The company, which is a leader in the emerging electric vehicle segment with offerings such as Nexon, also plans to develop around 10 additional new offerings in the segment, said Tata Motors President of Passenger Vehicles Business Shailesh Chandra.

“As for the future, over the next five (years), we will invest Rs 15,000 crore in electrification. We will be working on almost 10 products with different body types, prices, range options” , Chandra told PTI.

The company had raised $1 billion in funding from private equity firm TPG in its EV division, valuing the business at $9.1 billion.

ICICI Direct has given a target price of Rs 500 on the stock.

“Tata Motors share price has been flat for the past 5 years (Rs 520 levels in January 2017), underperforming the Nifty Auto Index. Tata Motors has a target price of Rs 625 on SOTP (13x, 3.5x FY24E EV/EBITDA on India, JLR; value of Rs 160 for Indian EV business; prior target price of Rs 600 “said the brokerage.

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