Tata Motors stock climbs 3% on Rs 15K cr investment plan in EV segment

Shares of Tata Motors gained over 3% today after a company official said it plans to invest Rs 15,000 crore in the EV segment for the next five years. The large cap stock opened with a gain of 3.11% at Rs 426.50 on BSE. Tata Motors shares touched an intraday high of Rs 428.5, rising 3.59% against the previous close of Rs 413.65 on BSE.

The share has lost 12.46% since the beginning of this year and risen 32.06% in a year.

Tata Motors shares are trading higher than 5 day and 200 day moving averages but lower than 20-day, 50-day and 100-day moving averages.

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

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The stock hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 268.50 on August 24,2021.

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

"As far as the future is concerned, in the next five (years), we will invest Rs 15,000 crore in electrification. We are going to work on nearly 10 products with different kind of body styles, price, driving range options," Chandra told PTI.

The company had raised $1 billion in funding from private equity major 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 stock price has been flattish over the past 5 years (Rs 520 levels in January 2017), underperforming the Nifty Auto index. We retain BUY on continued EV proactiveness and robust demand prospects. Tata Motors has target price of Rs 625 on SOTP basis (13x, 3.5x FY24E EV/EBITDA on India, JLR; Rs 160 value to Indian EV business; earlier target price of Rs 600," said the brokerage.

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