Rakesh Jhunjhunwala made Rs 170 crore from this auto inventory in September; analysts see additional upside


Large 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 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 consider the inventory might rise even additional, augmenting Rakesh Jhunjhunwala’s earnings 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 larger, the worth of Rakesh Jhunjhunwala’s shareholding within the firm in the present day 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 achieved are assuming Rakesh Jhunjhunwala didn’t promote or purchase extra shares of Tata Motors for the reason that finish of June. 

Typically known as the Warren Buffett of the Indian inventory market, Rakesh Jhunjhunwala picked up a stake in Tata Motors in September final 12 months, shopping for 4 crore fairness shares of the Tata group firm. The massive bull later added to his shareholding in March this 12 months 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 consider Tata Motors share value might rally additional and attain a goal value of Rs 353 per share. “We stay constructive on JLR’s upcoming product pipeline, which can 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 consider the worst is behind. Apart from that, tight management on prices also needs to bolster profitability,” they stated in a be aware.  “Tata Motors continues to take care of a robust give attention to steadiness sheet enchancment. Covid and semiconductor scarcity have delayed the materialisation of identical. As manufacturing normalises, tailwinds like mannequin cycle for JLR–RR launch in 9 months adopted by RRS–demand revival in CV and sharp price discount initiatives will drive sturdy FCF, in our view,” they added.

In the meantime, HDFC Securities has a ‘Purchase’ ranking on Tata Motors seeing the EV alternative forward. “We consider that Tata Motors will profit from an bettering demand atmosphere, each in India in addition to abroad (at JLR). Additional, Tata Motors is launching electrical merchandise throughout its world portfolio,” they stated. 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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