Tata Motors surges 40%, reclaims top spot with ₹4 Lakh Crore market cap

26 Jul 2024 , 10:18 AM

Tata Motors shares have surged by 40% since the start of the year. This rally has increased Tata Motors’ market capitalization to a record ₹4 lakh Crore. Tata Motors has overtaken Maruti Suzuki to reclaim the top position in market value. Tata Motors’ market capitalization includes both its ordinary shares and DVR.

Maruti Suzuki had overtaken Tata Motors in market value in March, and Tata Motors reclaimed the top spot after nearly five months.

Mahindra & Mahindra, the third-largest auto manufacturer, has a market capitalization of ₹3.5 lakh Crore.

Together, Tata Motors, Maruti Suzuki, and Mahindra & Mahindra account for nearly 50% of the Nifty Auto index’s market valuation, which stands at ₹23.4 lakh Crore.

The recent rally in Tata Motors shares was spurred by an upgrade from Japanese brokerage firm Nomura.

EBIT margins are projected to rise from 8.5% in FY25 to 10.1% by FY27, with potential to increase to 11%–12% by FY30.

Tata Motors shares rallied 6.2% on Thursday, marking the biggest single-day gain since January 2023. In 2023, Tata Motors’ shares returned 101%, compared to Nifty50’s gain of 19.3%.

At the time of writing on July 26, 2024 at 10:11 am shares of Tata Motors is currently trading at ₹1087 which is a 0.35% dip than the previous close. Tata Motors stock has gained a total of 69% in the last one year, and 37% since the beginning of the year.

Tata Motors Limited, headquartered in Mumbai, is an Indian multinational automotive company and part of the Tata Group. The company produces cars, trucks, vans, and buses. Subsidiaries include British Jaguar Land Rover and South Korean Tata Daewoo.

Tata Motors has joint ventures with Hitachi (Tata Hitachi Construction Machinery) and Stellantis, which produces vehicle parts for Fiat Chrysler and Tata-branded vehicles.

Tata Motors’ manufacturing plants are located in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, the United Kingdom, and Thailand.

Research and development centers are situated in Pune, Jamshedpur, Lucknow, Dharwad, India, South Korea, the United Kingdom, and Spain. Tata Motors is listed on the BSE and NSE and is part of the BSE SENSEX and NIFTY 50 benchmark indices.