Tata Motors shares in focus today as JLR plans $18.65-bn electric push

Shares of Tata Motors are in focus today after auto firm’s British arm Jaguar Land Rover (JLR) said it plans to invest 15 billion pounds ($18.65 billion) over the next five years to expand its electric-vehicle offerings. In the pre-open session, Tata Motors stock was trading at Rs 474.95, up 1.28% against the previous close of Rs 468.95 on BSE. Market cap of the firm stood at Rs 1.56 lakh crore. Tata Motors stock has gained 6.46% per cent in a year and risen 21 per cent in 2023.

Tata Motors stock hit a 52-week high of Rs 494.50 on August 17, 2022 and a 52-week low of Rs 366.05 on May 12, 2022.

In terms of technicals, the relative strength index (RSI) of Tata Motors stands at 69.1, signaling it's trading neither in the overbought zone nor in the oversold zone.

Tata Motors stock has a one-year beta of 1.3, indicating very high volatility during the period. Tata Motors shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The stock hit an eight month high of Rs 483.5 in the previous session on hopes of a healthy earnings in the January-March quarter (Q4FY23), on the back of a recovery in wholesale volumes at Jaguar Land Rover (JLR).

The board of directors of the firm is scheduled to meet on May 12, 2023 to consider and approve audited financial results of the company (Standalone and Consolidated) for the quarter and financial year ended March 31, 2023.

Tata Motors is likely to clock a 37 per cent rise in consolidated revenue led by a strong growth across JLR (+53 per cent), CVs (+18 per cent) and PVs (+7 per cent), said analysts at Emkay Global Financial Services.

"The company is likely to see consolidated Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin  expand by 140 bps, led by higher production in JLR, and supported by a strong margin performance in CVs," the brokerage firm added.

Meanwhile, JLR said its Halewood plant in Merseyside, UK, will become an all-electric manufacturing facility. It would also launch a new all-electric Range Rover SUV in 2025 and order books for that vehicle would open later this year.

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