Hot Stocks | Tata Motors DVR | Market

SI Reporter | Mumbai last updated at 13:35 IST on November 9, 2021

Tata Motors DVR's share price hit a four-year high of 292.70 rupees after it surged 9% on the BSE in intraday trading on Tuesday, due to a surge in trading volume. Tata Group’s shares surpassed the previous high of 284 rupees reached on October 19, 2021, and are at their highest level since June 2017. The stock hit a record high of 387 rupees on September 12, 2014.

Differential voting rights (DVR) shares are shares that are allowed to be issued with differentiated voting rights and differentiated dividend rights.

In the past month, the DVR of the Tata Group's commercial vehicle manufacturer has risen by 53%. In contrast, the Standard & Poor's BSE Sensex index rose by 0.63% during the same period. Today's over-the-counter trading volume has almost doubled. As of 01:07 in the afternoon, a total of 11.62 million shares of NSE and BSE have changed hands.

On October 12, 2021, Tata Motors (TML) announced that it would raise 7,500 crore (US$1 billion) from TPG Rise Climate for its passenger electric vehicle (EV) business, with a valuation of up to US$9.1 billion. Tata Motors said in a statement: "TML and TPG Rise Climate have reached a binding agreement under which TPG Rise Climate and its co-investor ADQ will invest in the newly formed Tata Motors subsidiary. "

At the same time, ace investor Rakesh Jhujhunwala purchased 10 million shares from July to September (the second quarter of fiscal year 2022), or 1.97% of the additional Tata Motors DVR shares, which will reduce his shares in the company from the end of the year. 1.97% increased to 3.93% in the second quarter June quarter (Q1), according to the company’s submitted equity structure.

In addition, in today's day trading, Tata Motors' share price rose 4% on BSE to 520.5 rupees. It reached a 52-week high of Rs 532.40 on October 14, 2021. Over the counter trading volume more than doubled, and a total of 42.75 million shares changed hands on NSE and BSE. TML is an automotive OEM under Tatas, which operates in the domestic (PV, CV) and global markets (Jaguar Land Rover, or JLR).

ICICI Securities has a "Buy" rating on Tata Motors, with a 12-month target price of Rs 600 per share. The brokerage firm expects that, supported by a 22.2% compound annual growth rate in volume (despite a low base), the revenue compound annual growth rate for fiscal year 21-23 will be 24%.

"The goal of cost control and efficiency improvement of FCF power generation is to continue to deleverage (FY21 net car debt is about 41,000 crore). India continues to maintain vigilance for electric vehicles (Nexon's photovoltaic market leader; plans to 2025 Introducing 10 models each year) and JLR (Jaguar all-electric by 2025; Land Rover will have six BEVs in the next five years) are key factors for future price performance,” the brokerage firm said.

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