September 23, 2022

Large bull Rakesh Jhunjhunwala has made Rs 170 crore from his shareholding in auto main Tata Motors, up to now this month. Tata Motor’s share value has rallied greater than 14% for the reason that finish of August to now commerce at Rs 332 apiece, up from Rs 287 per share on August 31. Tata Motor’s inventory has outperformed the benchmark Nifty Auto, which jumped 5.5% throughout the identical interval. Analysts stay bullish on Tata Motors regardless of its latest outperformance and imagine the inventory may rise even additional, augmenting Rakesh Jhunjhunwala’s income within the firm. 

Large bull pockets Rs 170 crore

On the finish of August, the worth of Rakesh Jhunjhunwala’s holding in Tata Motors was at Rs 1084.55 crore. The massive bull owns 3,77,50,000 crore fairness shares of the auto firm. Because the inventory value jumped greater, the worth of Rakesh Jhunjhunwala’s shareholding within the firm at present stands at Rs 1,254.62 crore. This translated to a revenue of Rs 170 crore in rather less than one month for the large bull. The calculations carried out are assuming Rakesh Jhunjhunwala didn’t promote or purchase extra shares of Tata Motors for the reason that finish of June. 

Typically referred to as the Warren Buffett of the Indian inventory market, Rakesh Jhunjhunwala picked up a stake in Tata Motors in September final yr, shopping for 4 crore fairness shares of the Tata group firm. The massive bull later added to his shareholding in March this yr earlier than trimming it all the way down to the present 3.77 crore fairness shares on the finish of the April-June quarter. 

Analysts stay bullish 

Analysts at Edelweiss imagine Tata Motors share value may rally additional and attain a goal value of Rs 353 per share. “We stay optimistic on JLR’s upcoming product pipeline, which is able to enhance the combination in favour of the extra worthwhile LR model. We anticipate demand throughout a few of its key markets to normalise as we imagine the worst is behind. Moreover that, tight management on prices also needs to bolster profitability,” they mentioned in a be aware.  “Tata Motors continues to keep up a powerful concentrate on stability sheet enchancment. Covid and semiconductor scarcity have delayed the materialisation of similar. As manufacturing normalises, tailwinds like mannequin cycle for JLR–RR launch in 9 months adopted by RRS–demand revival in CV and sharp value discount initiatives will drive sturdy FCF, in our view,” they added.

In the meantime, HDFC Securities has a ‘Purchase’ score on Tata Motors seeing the EV alternative forward. “We imagine that Tata Motors will profit from an bettering demand surroundings, each in India in addition to abroad (at JLR). Additional, Tata Motors is launching electrical merchandise throughout its international portfolio,” they mentioned. Alternatively, Jefferies has a value goal of Rs 435 on Tata Motors, valuing the standalone enterprise at Rs 200 per share at 4x FY23 PB and Jaguar at Rs 235 apiece at 3x FY23 EV/EBITDA.

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