Tata Group Stock Hits Back To Back 52-Week Highs, Soars 14% In 30-Days

Tata Group stock, Tata Motors share traded new 52-week high on June 5, 2023. Tata Motors stock rallied 2.32% intraday on BSE to Rs 548.20 per share. Prior to this, the large cap auto stock witnessed new 52-week high on June 2 and registered spurt in volume as well by more than 1.44 times. It again witnessed spurt in volume on June 1 by more than 2.26 times. Given below is the reason that is fueling the rally in Tata Motors shares:

Ealier on Friday, Tata Group inked an outline pact with the government of Gujarat to build a lithium-ion cell factory, investing nearly Rs 13,000 crore ($1.6 billion). This move aligns with India's aim to build its own electric vehicle (EV) supply chain, as per a Reuters report.

As per sources close to the development, the decision to set up the EV battery plant at Sanand, Gujarat, was taken earlier this week at a Tata Sons board meeting.

A joint statement on the memorandum of understanding (MoU) between Tata's unit Agratas Energy Storage Solutions and the Gujarat government said that work on the plant was likely to begin in less than three years. It would have an initial manufacturing capacity of 20 Gigawatt hours (GWh), which could be doubled in a second phase of expansion, added the statement.

"As the state government commits to a vision to reduce carbon emissions by increasing the production of electric vehicles, reliance on lithium-ion batteries will also increase significantly as EV usage increases," stated the statement.

Tata Motors Stock Performance: Tata Motors stock's current market price is Rs 546.55 per share. Its 52-week high price is Rs 548.65 per share and 52-week low price is Rs 375.50 per share, respectively. It has a market capitalisation of Rs 1,81,283.33 crore.

Tata Motors Return: Tata Motors share delivered 14% return in last 1-month only, 28% return in last 3-months, 26% in last 1-year, 63% return in last 2-years, and a huge 393% return in last 3-years.

About Tata Motors: Tata Motors Limited, a USD 35 billion organisation, is a leading automobile manufacturer with a portfolio that includes a wide range of cars, utility vehicles, trucks, buses and defence vehicles. Our marque can be found on and off-road in over 125 countries around the globe, according to its official website.