Shares of Tata Motors Limited rose 2.55 per cent to hit an intraday high of Rs 499.45 on BSE after foreign research house Jefferies maintained its bullish stance on the stock.
It has raised the target price to Rs 625 from Rs 565 per share and likes Jaguar Land Rover's focus on returning to the Land Rover brand that has higher-margin products.
Tata Motors' new sub-compact SUV Punch holds strong volume potential. It appears well-styled for its price and has received high safety ratings, added Jefferies.
The stock opened 2.45 per cent higher at Rs 499 against the previous close of Rs 487.05. With a market capitalisation of Rs 1,63,857 crore, the shares stand higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The large-cap stock has gained 277 per cent in the last one year and has risen 167 per cent since the beginning of this year. Punch is the latest addition to the automaker's popular 'New Forever' range of cars and SUVs. The Mumbai-based auto giant unveiled it on October 4 this year.
The company's stock has been gaining after it said it will raise $1 billion (Rs 7,500 crore) in its passenger electric vehicle (EV) business from TPG Rise Climate at a valuation of up to $9.1 billion.
Tata Motors Ltd (TML) and TPG Rise Climate have entered into a binding agreement whereby TPG Rise Climate, along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated. The first round of capital infusion will be completed by March 22 of next year and the entire funds will be infused by end of 2022, Jim Coulter, Managing Partner, TPG Rise Climate and Founding partner of TPG, had said.
N Chandrasekaran, Chairman Tata Motors, said the company will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. "We are excited and committed to play a leading role in the Government's vision to have a 30% electric vehicles penetration rate by 2030," he added.
The Tata Motors Group's global wholesales in Q2FY22, including Jaguar Land Rover, climbed 24 per cent to 2,51,689 units. Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range in Q2FY22 climbed 57 per cent to 89,055 units, while passenger vehicles sales zoomed 11 per cent to 1,62,634 units on a year-on-year basis.
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