Shares of Tata Motors NSE 18.71 % surged close to 10 per cent to hit its upper circuit limit in early trading in Mumbai on Wednesday as the auto major said it will raise $1 billion for its passenger electric vehicle business from TPG Rise Climate at a valuation of up to $9.1 billion.
Target price of Rs 400
According to a report published in Mint, analysts of Motilal Oswal say that the company faced chip shorts in the JLR unit in the first quarter.
Apart from this, the effect of local lockdown was also visible. In the coming days, Analysts of Motilal have given Buying advice in this stock and its target price has been fixed at Rs 400. Good recovery is expected in the company’s India business and JLR business.
Target price of Rs 513
ICICI Securities says that the company’s performance in the June quarter was as expected. Consolidated EBITDA margin stood at 7.9 percent.
It believes that in the coming days, the company will benefit a lot due to the increase in demand in the consumer vehicle segment.
It has kept the target price of this stock at Rs 513. ICICI Securities says that the company is also moving fast in the direction of electric vehicles.
Infra is being prepared with the help of Tata Power
The company will benefit greatly from these aspects. Tata Motors shares have seen a massive jump since last month. In October itself, the stock is up 39 per cent so far. The rally has been on account of the company showing a record orderbook and speculation of the company purchasing Ford’s manufacturing plant in Chennai.
The investment is planned to be through a newly formed subsidiary that Tata Motors has created for the electronic vehicle business and TPG-ADQ will hold a stake of 11-15 per cent.