Big bull Rakesh Jhunjhunwala has made Rs 170 crore from his shareholding in auto main Tata Motors, to date 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 stock 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 consider the stock may rise even further, augmenting Rakesh Jhunjhunwala’s earnings in the company.
Big bull pockets Rs 170 crore
At the tip 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 company. As the stock value jumped increased, the worth of Rakesh Jhunjhunwala’s shareholding in the company right now 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 accomplished are assuming Rakesh Jhunjhunwala didn’t promote or purchase further shares of Tata Motors for the reason that finish of June.
Often known as the Warren Buffett of the Indian stock market, Rakesh Jhunjhunwala picked up a stake in Tata Motors in September final year, shopping for 4 crore fairness shares of the Tata group company. The massive bull later added to his shareholding in March this year earlier than trimming it right down to the present 3.77 crore fairness shares on the finish of the April-June quarter.
Analysts stay bullish
Analysts at Edelweiss consider Tata Motors share value may rally further and attain a goal value 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 notice. “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’ score on Tata Motors seeing the EV alternative forward. “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 opposite hand, Jefferies has a value goal of Rs 435 on Tata Motors, valuing the standalone business at Rs 200 per share at 4x FY23 PB and Jaguar at Rs 235 apiece at 3x FY23 EV/EBITDA.