Big bull Rakesh Jhunjhunwala has made Rs 170 crore from his shareholding in auto key Tata Motors, so far this month. Tata Motor’s share cost has rallied more than 14% due to the fact the finish of August to now trade at Rs 332 apiece, up from Rs 287 per share on August 31. Tata Motor’s stock has outperformed the benchmark Nifty Auto, which jumped 5.5% throughout the very same period. Analysts stay bullish on Tata Motors in spite of its current outperformance and think the stock could rise even additional, augmenting Rakesh Jhunjhunwala’s income in the business.
Big bull pockets Rs 170 crore
At the finish of August, the worth of Rakesh Jhunjhunwala’s holding in Tata Motors was at Rs 1084.55 crore. The significant bull owns 3,77,50,000 crore equity shares of the auto business. As the stock cost jumped greater, the worth of Rakesh Jhunjhunwala’s shareholding in the business today stands at Rs 1,254.62 crore. This translated to a profit of Rs 170 crore in a tiny significantly less than one month for the significant bull. The calculations performed are assuming Rakesh Jhunjhunwala did not sell or acquire extra shares of Tata Motors due to the fact the finish of June.
Often referred to as the Warren Buffett of the Indian stock market place, Rakesh Jhunjhunwala picked up a stake in Tata Motors in September last year, getting 4 crore equity shares of the Tata group business. The significant bull later added to his shareholding in March this year prior to trimming it down to the existing 3.77 crore equity shares at the finish of the April-June quarter.
Analysts stay bullish
Analysts at Edelweiss think Tata Motors share cost could rally additional and attain a target cost of Rs 353 per share. “We remain positive on JLR’s upcoming product pipeline, which will improve the mix in favour of the more profitable LR brand. We expect demand across some of its key markets to normalise as we believe the worst is behind. Besides that, tight control on costs should also bolster profitability,” they mentioned in a note. “Tata Motors continues to maintain a strong focus on balance sheet improvement. Covid and semiconductor shortage have delayed the materialisation of same. As production normalises, tailwinds like model cycle for JLR–RR launch in nine months followed by RRS–demand revival in CV and sharp cost reduction initiatives will drive strong FCF, in our view,” they added.
Meanwhile, HDFC Securities has a ‘Buy’ rating on Tata Motors seeing the EV chance ahead. “We believe that Tata Motors will benefit from an improving demand environment, both in India as well as overseas (at JLR). Further, Tata Motors is launching electric products across its global portfolio,” they mentioned. On the other hand, Jefferies has a cost target of Rs 435 on Tata Motors, valuing the standalone company at Rs 200 per share at 4x FY23 PB and Jaguar at Rs 235 apiece at 3x FY23 EV/EBITDA.