Tata Tech soars over 7.30% after firm signs JV agreement with BMW; get details here

Tata Technologies soared over 7.30 per cent on BSE on Tuesday (April 2, 2024) after the Tata group company signed a joint venture (JV) agreement with BMW Group.

The stock that closed at Rs 1,049.95 on Monday opened at Rs 1,060.00 on Tuesday and soared to the day's high of Rs 1126.80, a 7.32 per cent rise from the previous close.

The stock of the Tata group company ended the trading session trading higher by 4.01 per cent, or Rs 42.15, at Rs 1,092.10.

Tata Technologies-BMW agreement 

Both companies will have a 50 per cent each stake in the JV.

The agreement between the two giants is for creating an automotive software and IT development hub in India.

JV's automotive software will be used in BMW Group's premium vehicles.

Both have plans to set up software development hubs in Pune, Bengaluru, and Chennai.

It will become part of BMW Group's global network of software and IT hubs.

BMW already has a plant in Chennai.

Tata Technologies and EV

The company won four major global automotive OEM deals in Q3FY24.

The Vietnamese EV company is working on 2 EV development programs for VinFast.

In January, VinFast announced the construction of an integrated EV plant with a capacity of 150,000 EVs in Tamil Nadu.

It has been working on EV concepts for years for Tata Motors and JLR.

Valuation

Company P/E

Tata Tech 71.5x
KPIT Tech 126x
Tata Elxsi 64x
LTTS 49x