Tata Motors is hitting back-to-back 52-Week High

Yesterday, shares of Tata Motors Ltd reached a 7-year high and hit a fresh 52-week high, following a positive market sentiment among investors. Today, the stock opened at a fresh 52-week high of Rs 585.95. Currently, it is trading at Rs 578.40, down by 0.84%.

Over the past one year, the company has provided a return of over 45%, compared to the S&P BSE Auto return of 37% during the same period. As Tata Motors prices are increasing today, the S&P BSE Auto index has also hit an all-time high at Rs 34,393.44. 

In FY23, Tata Motors became India’s second company, after Reliance Industries, to cross the Rs 1 lakh crore mark in revenue. On June 15, 2023, the company upgraded its long-term credit ratings from CARE Ratings to AA/Stable from AA-/Stable. 

Here are some growth drivers for Tata Motors: 

It is the second-largest in India in terms of sales outlets, with 1,410 showrooms across the country, and it has 855 service centres.

The company has a strategy that focuses on SUVs and attractive product styling, which has shown good results in the Indian passenger vehicle market. 

Currently, the company holds the largest market share within the EV passenger car segment, with just two models: Nexon EV and Tigor EV. It commands an 86% market share in the EV sector. 

Tata Motors subsidiary, Jaguar Land Rover has successfully reduced its break-even production levels by 50% in the fiscal year 2023.

Land Rover has streamlined its platforms, reducing them from nine to seven and it aims to further consolidate them to three platforms once the electric vehicle (EV) strategy is implemented. 

Recently, the group, through its subsidiary Agratas Energy Storage Solution, signed an MoU with the Gujarat government for capital expenditure plans to set up a lithium-ion battery factory, aiming to establish a 20 GW factory with an initial investment of Rs 13,000 crore supporting India’s electric vehicle (EV) industry development and pushing towards achieving 100% EV adoption and 50% carbon emissions reduction by 2030.