Shares of Tata Motors are trading with gains on Monday morning, hitting a new 52-week high, after the Tata Group announced that it plans on establishing a lithium-ion cell manufacturing giga factory in Gujarat.

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The stock is now up for the fourth day in a row and has gained more than 40 percent from its 52-week low of Rs 375.5 on December 26 last year. The stock is up 26 percent over the last three months.

Shares had last hit a 52-week high on May 15 after the company had reported strong quarterly results for the January-March period. Following the gain in the share price, the market capitalisation of Tata Motors has reached nearly Rs 2 lakh crore.

Tata Motors' subsidiary, Agratas Energy Storage Solution, signed a Memorandum of Understanding (MoU) with the Government of Gujarat to solidify the lithium-ion unit commitment on Friday, June 2.

As per an official statement from the Gujarat government, the project will entail an initial investment of Rs 13,000 crores (equivalent to $1.8 billion) in its first phase.

Morgan Stanley said it has maintained its 'overweight' rating on Tata Motors with a target of Rs 617 per share. The brokerage firm said Tata Group's foray into battery cells will help Tata Motors. It said this plant will provide a stable, secure and cost-effective supply chain, and all of this is critical to maintaining the lead in the Indian EV space.

At present, Tata Motors has the highest market share in the EV passenger car market. It leads in the EV space with 86 percent market share from just two models — Nexon EV and Tigor EV.

Last week, Tata Motors-owned British luxury carmaker Jaguar Land Rover (JLR) launched its flagship sports utility vehicle (SUV) Range Rover Sport SV. The new vehicle is claimed as the fastest and most powerful production Range Rover till now.

Meanwhile, brokerage firm CLSA maintained its buy recommendation on Tata Motors with a price target of Rs 624 as JLR's sales improved substantially in April, with strong and prominent growth witnessed in the US and Chinese markets. However, the business across Europe and the United Kingdom continues to struggle.

Shares of Tata Motors are trading 1.1 percent higher at Rs 541.75.