Tata Motors shares surge 250% in a year, global brokerage sees further upside of 31%

Tata Motors share price added over a percent intraday on July 1. The stock price has surged more than 250 percent in the last year. The scrip was trading at Rs 344.80, up Rs 5.25, or 1.55 percent.

Buoyed by a turnaround in the business, Tata Motors has slowed down its search for a partner in the passenger-vehicle segment and is instead looking to chart a new plan on its own, Economic Times reported.

Sustained volume momentum and structured cost-cutting exercise had put the car division in a self-sustaining mode, Shailesh Chandra, president of Passenger Vehicle (PV) business at Tata Motors, said.

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The company's board on June 14 approved a proposal to raise up to Rs 500 crore through the issue of securities on a private placement basis. A meeting of the duly authorised committee approved subscription, on a private placement basis, up to 5,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) of face value Rs 10 lakh each, aggregating up to Rs 500 crore, the auto major said in a regulatory filing.

In another filing, the auto major said that it bagged an order for 15 hydrogen-based fuel cell buses from the Indian Oil Corporation Limited (IOCL). IOCL had invited bids for hydrogen-based proton exchange membrane (PEM) fuel cell buses in December 2020, it said.

According to a CNBC-TV18 report, global research firm Goldman Sachs has a buy rating on the stock with the target at Rs 455 per share. It is of the view that improved strategy and cyclical recovery should drive a big turnaround.

"JLR's shift in focus from volumes to profit and cash flows is promising while a fresh EV roadmap is in place though execution remains a key risk," the research firm said, referring to Jaguar Land Rover.

"Improving India business provides a higher floor to fair value. See EBITDA rising by 90 percent by FY24," it added.