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    Tata Motors shares hit 52-week high on Rs 13,000 crore EV battery plant deal

    Synopsis

    Tata Motors' shares rose 2.3% after the Tata Group announced plans to invest INR 13,000 crore ($1.8bn) in setting up a lithium-ion plant in Gujarat through Tata's Agratas Energy Storage Solutions unit and the Gujarat government. The plant will be situated in Sanand, northern Gujarat, and will have an initial manufacturing capacity of 20-gigawatt hours, which could be doubled later. The investment will occur in two phases, according to an official announcement by the Gujarat government, with work expected to begin in less than three years.

    Tata Motors shares hit 52-week high on Rs 13,000 crore EV battery plant dealiStock
    Shares of Tata Motors rose 2.3% and hit a 52-week high at Rs 548.4 in Monday's trade on BSE after the Tata Group revealed plans to invest Rs 13,000 crore to set up a lithium-ion manufacturing facility in Gujarat.

    A joint statement on the memorandum of understanding, between Tata's unit Agratas Energy Storage Solutions and the government of the western state of Gujarat, said work on the plant, to be based in Sanand, northern Gujarat, was expected to start in less than three years.

    According to an official announcement by the Gujarat government, the project is set to commence with an initial investment of Rs 13,000 crore (equivalent to $1.8 billion) during its first phase. It would have an initial manufacturing capacity of 20-gigawatt hours (GWh), which could be doubled in a second phase of expansion, the statement said.

    On a year-to-date basis, Tata Motors shares have rallied 39%, while it has surged 15% in the last month.

    Earlier last week, Tata Motors had said its electric vehicle sales of domestic and international business in the passenger vehicles segment went up 66% to 5,805 units in May 2023, against 3,505 units in the year-ago period.

    Tata Motors' total sales in May 2023 were 73,448 units against 74,755 units in the year-ago period.

    According to a company statement, the total sales of passenger vehicles went up 6% to 45,984 units in the reviewed month, against 43,392 units a year ago. The company said it included the sales of passenger vehicles and Tata passenger electric mobility.

    The sales of heavy commercial vehicle trucks in May this year rose 11% to 8,160 units, against 7,343 units in May 2022. Sales of intermediate light-medium commercial vehicles declined 38% to 3,450 units, against 5,540 units in the year-ago period.

    In Q4FY23, the automaker reported a net profit of Rs 5,407.8 crore against a loss of Rs 1,032 crore in Q4FY22. For the quarter ended March 31, 2023, the auto major also posted a 35% year-on-year (YoY) jump in consolidated revenue to Rs 105,932 crore.

    As per Trendlyne data, the average target price of the stock is Rs 598, an upside potential of 9% from the current market prices. The consensus recommendation from 31 analysts for Tata Motors is a Buy.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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