The shares of Tata Motors Limited gained more than 2 percent on Tuesdays and were trading at Rs 394 levels till the afternoon. The stocks gained after the company announced that it has signed an agreement for the supply of Electric Vehicles (EVs).
Delhi Transport Corporation (DTC) has signed a definitive agreement with TML CV Mobility Solutions, a fully-owned subsidiary of Tata Motors, for the operation of 1500 electric buses in the city of New Delhi. As per the terms of the agreement, the company will supply, operate and maintain 1,500 units of 12-metre low-floor air-conditioned Electric buses for a period of 12 years.
The shares of Tata Motors have been on a downward trend this year and have shed approximately 19 percent on a yearly basis. The stock reached its 52-week low of Rs 366.20 in May this year. Currently, it is trading 5 percent away from those levels.
Brokerage firm Motilal Oswal has a ‘Buy’ call on Tata Motors and has assigned a target price of Rs 500 per share which represents an upside of 27% from the current levels.
In Q2FY23, the Tata group company reported a consolidated net loss of Rs 945 crore compared to Rs 4,441.5 crore, which they incurred a year earlier in the same period. The consolidated revenue from operations rose 29.7% to Rs 79,611.3 crore in the quarter under review, as against Rs 61,378.82 crore registered in the year-ago period.
Tata Motors Limited, part of Tata group, is engaged in the manufacturing of products passenger cars, trucks, vans, coaches, and buses. According to a BNP Paribas report, Tata Motors is a market leader in the electric passenger vehicle segment with a 76 percent volume market share.
Written by Anoushka Roy
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