InvestorQ : Why is it that Tata Motors has been rallying so rapidly in the last few weeks?
Rutuja Nigam made post

Why is it that Tata Motors has been rallying so rapidly in the last few weeks?

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1 month ago
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Tata Motors has been in the midst of a frenetic price rally. It rallied by 8% on Monday to cross Rs.415 and is not trading at its highest level since January 2018. The stock of Tata Motors has rallied 40% in just the last one month, which is a ten-multiple of the Nifty and Sensex returns in the same period. Of course, the latest trigger has come from the proposed sale of a stake in the electrical vehicles unit or the EV unit.

Tata Motors is planning to raise $1 billion by selling a stake in its EV unit. This deal is likely to value the EV business of Tata Motors at $8 billion and that is also likely to substantially re-rate the valuations of Tata Motors. Some of the marquee investors likely to invest in the Tata Motors EV business are TPG and Temasek. In addition, there is also the story of JLR having improved its performance despite the chip shortage.

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