Tata Motors shares were in demand during Thursday’s session after the auto major’s UK-based subsidiary Jaguar Land Rover announced an investment plan in electric vehicle segment.

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The Tata Group company stock jumped more than a per cent to touch nearly eight-month high level of Rs 475 per share on the BSE today. The counter is mere Rs 20 or 4 per cent away from its 52-week high of Rs 494.5 per share, touched on August 17, 2022.

Tata Motors-owned Jaguar Land Rover on Wednesday said it will invest 15 billion pounds (about Rs 153 crore) over the next five years to enhance its industrial footprint, introduce new models and bolster technology in its range.

The British brand said its Halewood plant in the UK will become an all-electric production facility and its next generation medium-size SUV (Sports Utility Vehicle) architecture, electrified modular architecture (EMA), will now be pure-electric.

JLR confirmed that it will start to invite applications for client orders for the modern luxury all-electric Range Rover from later this year.

Brokerages View

Global brokerages are bullish on the auto stock on the back of subsidiary's strong business outlook and investment plans. BoFA Sec maintained a ‘buy’ rating, while Morgan Stanley retained an ‘overweight’ stance and Macquarie has an ‘outperform’ call on Tata Motors.

 

Brokerage Rating Price Target
BoFA Sec Buy Rs 475
Morgan Stanley Overweight Rs 513
Macquarie Outperform Rs 511
Jefferies Buy Rs 600

At Jaguar Land Rover (JLR), chip constraints and weakening global macro are posing pressures, Jefferies said in its note on Tata Motors subsidiary. However, JLR is going through a good product cycle; it has a strong order book of around 2,00,000 units with 76 per cent of orders, it said in its report.

The brokerage said, "JLR has also been focussing on improving profit and cash flow with an emphasis on selling higher-margin SUVs and reducing breakeven. It is lagging peers on EVs but has embarked on a new roadmap giving it a fresh chance to catch up over 2024-26".

Tata Motors' stock history

Tata Motors shares in the last one year have gained nearly eight per cent as compared to a three per cent rise in the Nifty50.

— Nifty50 — Tata Motors

Year-to-date, the counter grew 20 per cent against over a three per cent fall in the benchmark index.