Shares of this large-cap company jumped upto 2 percent in Thursday’s trading session after signing an MoU with the Government of Tamil Nadu to set up a vehicle manufacturing facility. The shares have delivered a multibagger return of 132 percent to its shareholders in one year.
With a market capitalization of Rs. 3,53,478 crores, the shares of Tata Motors Ltd started Thursday’s trading session on a lower note at Rs. 964.95 compared to its previous close of Rs. 973.20. During the trading session, the shares hit a high of Rs. 982, making a gaining around 2 percent and are currently trading at Rs. 964 apiece.
According to the exchange filing, the automobile company signed a facilitation Memorandum of Understanding (MoU) with the Government of Tamil Nadu to explore setting up a vehicle manufacturing facility in the state. The MoU envisages an investment of Rs. 9,000 crores over 5 years and can potentially create up to 5,000 jobs (direct and indirect).
Furthermore, following the signing of this MoU, teams from guidance, Tamil Nadu’s nodal agency for investment promotion and facilitation and Tata Motors Group will work together to take this opportunity forward.
Coming onto the company’s financial statement, the revenue increased by 5.18 percent from Rs. 1,05,128 crores during the September quarter to Rs. 1,10,577 crores in the December quarter. In addition, the net profits magnified by 87 percent from Rs. 3,832 crores to Rs. 7,145 crores during the same period.
Tata Motors has outlined significant capital expenditure plans for the third quarter of the financial year 2023-24. The company plans to invest in various areas such as electrification, new launches, and technology upgrades to enhance its competitive positioning.
Moreover, in India, Tata Motors has planned to focus on electrification and new launches to maintain its market share in the passenger vehicle segment. The medium-term capital expenditure for the commercial vehicle and passenger vehicle businesses is estimated to be up to Rs. 2,500 crore and Rs. 3,000 crore, respectively. Additionally, the EV business is expected to require a capital investment of 2 billion US dollars until FY27.
Headquartered in Mumba, Tata Motors was incorporated in 1945. The company is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world.
Written By Vaibhav Patil
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