Tata Motors stock rises 3% on JLR-NVIDIA deal, JP Morgan's bullish stance

Stock of Tata Motors gained nearly 3% in early trade today after the auto major's UK arm Jaguar Land Rover announced a partnership with NVIDIA for all new vehicle platforms slated for production beginning in 2025. US investment bank JP Morgan initiating coverage on the Indian auto firm also led to positive sentiment around the stock.

 The large cap stock touched an intraday high of Rs 511.4, rising 2.65% on BSE.

Tata Motors stock touched an intraday high of Rs 511.4, rising 2.65% on BSE. Tata Motors shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Tata Motors stock has gained 53.31% in one year and risen 5% since the beginning of this year. Market cap of the firm rose to Rs 1.67 lakh crore on BSE. Total 2.99 lakh shares changed hands amounting to a turnover of Rs 15.39 crore.

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"Jaguar Land Rover has formed a multi-year strategic partnership with NVIDIA, the leader in artificial intelligence (AI) and computing, to jointly develop and deliver next-generation automated driving systems plus AI-enabled services and experiences for its customers. Starting in 2025, all new Jaguar and Land Rover vehicles will be built on the NVIDIA DRIVE software-defined platform-delivering a wide spectrum of active safety, automated driving and parking systems as well as driver assistance systems. Inside the vehicle, the system will deliver AI features, including driver and occupant monitoring as well as advanced visualisation of the vehicle's environment," said Tata Motors.

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Meanwhile, JP Morgan has initiated coverage on the Indian auto firm and assigned overweight stance with a target price of Rs 630.  

The investment bank said there is a potential bull case fair value of Rs 783 (57% upside) backed by electric vehicles leadership in Indian PVs and meeting medium-term targets at JLR.

The company demonstrated commitment to deleveraging of balance sheet and structural strengthening of its business- JLR & India- since 2019,  JP Morgan said.

The investment bank also believes that the firm can achieve its zero net debt target by FY 24.