Share of Tata Motors extended gains for the second straight session today after the auto firm said it would reduce group automotive debt of Rs 48,000 crore ($6.4 billion) to zero in the next three years. The stock has gained 13.97% in the last 3 days. The stock hit 52-week high of Rs 201.80 on January 15 this year and fell to 52-week low of Rs 63.60 on March 24, 2020.
Total 95.07 lakh shares changed hands amounting to turnover of Rs 127.39 crore. The stock opened 2.16% higher at 129.80 against previous close of Rs 127.05 on BSE.
The stock rose up to 9.41% to Rs 139 during the day. Later, the share closed 8.50% or Rs 10.80 higher at Rs 137.85. In two sessions, the share has gained 13.33% on a closing basis.
On Tuesday, the stock closed 4.83% higher on BSE. Tata Motors share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 24.75% during one year and lost 25% since the beginning of this year.
In a month, the share has climbed 32.87%.
Market cap of Tata Motors rose to Rs 42,581 crore today.
Tata Motors is "deleveraging this business substantially" and has set targets to generate free cash flows, said chairman N Chandrasekaran during the annual shareholder meeting on Tuesday.
"The company is working with agility to transform towards a future that is strong, sustainable, and financially rewarding," Chandrasekaran said, adding that the group would also look to "unlock non-core investments".
Tata Motors' domestic business is expected to generate free cash flows from fiscal year 2021 while JLR will achieve this a year later in 2022, said CFO P B Balaji said during the virtual shareholder meeting.
Meanwhile, benchmark indices rose for the fourth consecutive session led by gains in auto stocks after FM Nirmala Sitharaman said GST Council would consider the proposal to reduce tax on two-wheelers. Sensex ended 230 points higher at 39,073 and Nifty gained 77 points to 11,549.