Monday, 17 June 2024
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View the most recent information about well-liked Tata Group stocks

  • Tata Technologies and the BMW Group have to build IT and automotive software development centers.
  • In the automotive software space, the JV will concentrate on automated driving, infotainment, and digital services.
  • Tata Tech is expanding its software ER&D capabilities, and answers investor questions regarding its parentage.

Global engineering services provider Tata Technologies and the BMW Group have established a joint venture to build IT and automotive software development centers in Pune, Bangalore, and Chennai.

In the automotive software space, the JV will concentrate on automated driving, infotainment, and digital services. In the commercial IT space, it will tackle digitalizing and automating product development, production, and sales.

Tata Group

At the beginning of the JV, Tata Technologies will provide 100 resources, but over the next few years, it is anticipated that these resources would rise quickly to 1,000 or more. JM Financial analysts pointed out that the transaction could allay investor worries about client concentration, shows that Tata Tech is expanding its software ER&D capabilities, and answers investor questions regarding its parentage.

It also supports the idea that OEMs would probably experience a wave of offshore in auto ER&D due to the increasing complexity of software and the various constraints they face.

Since 2016, the BMW Group has been assembling a global network of technology partners, and Tata Tech’s entry into that network is a big plus. Tata Technologies’ valuation is currently 47x/44x, on pace with KPIT/ELXSI, and its capabilities cover the whole range of OEMs’ ER&D spend. JM Financial maintained its buy rating on the shares, with a target price of Rs 1,370 remaining constant.

Tata Technologies was established in 1994 and provides digital solutions and product development to original equipment manufacturers (OEM) and Tier 1 suppliers worldwide.

With a 140% premium over the issue price of Rs 500, the business made a spectacular debut on the bourses on November 30. There were 69.43 subscriptions to the IPO, 16.50 subscriptions to the public issue in the retail category, 203.41 subscriptions in the QIB category, and 62.11 subscriptions in the NII category.

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