The shares of Tata Motors can see a tremendous rise in the coming days. Foreign brokerage houses are bullish on Tata Motors shares. Brokerage house Jefferies has given buy rating to Tata Motors shares. The brokerage house has given a target price of Rs 540 for the shares of the company. Jefferies has given a price target of Rs 605 for the shares of Tata Motors with the upside scenario. The shares of Tata Motors are trading at the level of Rs 409 on the Bombay Stock Exchange on 6 May 2022. That is, the company’s shares can jump by more than 40 percent.
The company’s share will increase in the electric vehicles segment
Brokerage house Jefferies is bullish on Tata Motors’ electric vehicle (EV) strategy. The brokerage house expects the company’s market share to increase with the increase in electric vehicle adoption. According to Jefferies, India is still in the early stages of electrification. Electric vehicles account for only 1 per cent of passenger vehicles. Tata Motors has taken the lead in electric vehicles. Electric vehicles account for 7 per cent of the company’s India passenger vehicle volume.
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Shares of Tata Motors have climbed more than 41% in 1 year
Jefferies says the ACE electric vehicle is Tata Motors’ first product on the new electric powertrain (EVOGEN). This electric vehicle is designed targeting intra-city applications like e-commerce delivery. Tata Motors has got a good response on the ACE EV. The company has signed MoUs with leading e-commerce and logistics companies for 39,000 vehicles. Tata Motors wants to increase its electric passenger vehicle portfolio to 10 by the financial year 2026. At present, the company has 2 vehicles in its electric vehicle portfolio. Shares of Tata Motors have gained over 41 per cent in the last one year. However, so far this year, the company’s shares have fallen by about 15 per cent.
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