Tata Motors’ share price jumped back in the green on Wednesday morning after starting the week with a two-day losing streak.
What Happened: The shares are upbeat today as brokerage firm CLSA maintained its “buy” rating on the stock raising the price target to ₹807 from ₹777. The global brokerage said that the company selling a 9.9% stake in Tata Technologies adds ₹26 per share to Tata Motors’ value.
The Tata Group company last week had announced the sale which values Tata Technologies at around 16,300 crore. Tata Motors is set to receive ₹1,467 crore from TPG in exchange for its 9% stake, and the Ratan Tata Endowment Fund will pay ₹146.7 crore for its portion of the stake. The deal is expected to be completed by this month’s end.
The brokerage also added that the company has launched Harrier and Safari and there is a strong momentum in SUV launches. Talking about Jaguar Land Rover, the analysts said that the company’s EBIT is ahead of the brokerage firm’s FY24 estimates.
Price Action: Tata Motors’ share price was up 0.11% to trade at ₹656.45 at open on Wednesday.
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