Tata Motors share price tag surged as a lot as 20 per cent to Rs 502 apiece on BSE on Wednesday, right after Rakesh Jhunjhunwala’s portfolio firm mentioned to raise Rs 7500 crore ($994 million) from private equity firm TPG’s Rise Climate Fund and Abu Dhabi’s ADQ to expand its passenger electric mobility company. The stock has no circuit limits, as it trades in the futures and selection (F&O) segment. Analysts say that this report came as a bonus for Tata Motors as its share price tag was currently soaring on account of robust worldwide wholesale numbers. The stock is probably to rally 20 per cent more to Rs 600 in next couple of quarters. “Technically, all indicators are showing a bullish trend in Tata Motors. It may touch the level of 520-550 in near term,” Ravi Singh, VP & Head of Research, Share India Securities, told TheSpuzz Online.
Rakesh Jhunjhunwala owned 3.77 crore equity shares or a 1.14 per cent stake in the enterprise at the finish of June quarter this year. In significantly less than one year, Tata Motors stock price tag rallied almost 300 per cent, increasing from Rs 126 per share to more than Rs 500 level, quadrupling investors’ dollars. “TPG investment in the EV segment, strong future potential in the EV space, positive brokerage reports and ultra-positive market sentiment has led to a huge rally in Tata Motors in the past week,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told TheSpuzz Online. Ramachandran advised that technically, the stock is really overbought and investors must book income in their invest in positions at existing levels.
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Tata will type a separate electric mobility unit in which TPG and ADQ will get amongst 11% and 15% share against compulsorily convertible shares, valuing the new entity at about $9.1 billion. Analysts say that this complete deal could possibly assistance its peer enterprise Tata Power as well in the extended run, due to its presence in EV charging stations which will assistance the all round ecosystem for EV space in India. “This rally may continue in the long term and will help Tata Motors in both passenger and commercial vehicle space. On the current valuations front, Tata Motors is looking attractive and the stock may cross Rs 600-mark in next few quarters and it is worth holding for mid to long term,” Harsh Patidar, Auto Analyst at CapitalBy means of Global Research, told TheSpuzz Online.
Tata Motors mentioned that the fund will be used to partly fund investment of $2 billion (more than Rs 16,000 crore) in the next 5 years by a new subsidiary of the enterprise for expanding its EV company, such as the launching of 10 EV models.
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