Rakesh Jhunjhunwala portfolio: Motilal Oswal is bullish on this Tata Group inventory


Home brokerage and analysis agency Motilal Oswal has ‘Purchase’ suggestion on Tata Motors shares with a goal value of 565 per share. Whereas the arrival of electrical automobiles (EVs) is inflicting disruption for incumbents, the dealer believes that EVs are creating large alternatives for smaller gamers, new entrants, and start-ups alike.

The latest fundraise by Tata Motors (TTMT) within the e-PV enterprise and the resultant re-rating of the inventory has made the brokerage inquisitive about how buyers ought to take a look at the valuations of the EV companies of incumbent OEMs and whether or not a re-rating ought to rely on the exterior fundraise, it mentioned.

“Even in India, the latest fundraises within the EV phase have been at very wealthy valuations for companies which can be on the very nascent stage of evolution. Ola Electrical raised $200 million in September 2021, valuing the start-up at $3 billion. Equally, Tata Motors raised $1 billion in October 2021, valuing its Electrical PV enterprise at $6.7–9.1 billion,” the observe on vehicles highlighted.

The brokerage home believes that the valuations of pure EV companies are pushed by the anticipated tempo of electrification within the phase and the aggressive panorama within the EV phase. Within the Indian context, the pace of electrification would differ considerably throughout segments.

As per BSE shareholding sample, Indian ace investor and inventory market dealer Rakesh Jhunjhunwala holds 1.11% stake or 3,67,50,000 shares as of September 2021 within the Tata Group’s auto subsidiary. Tata Motors’ shares have given multibagger return in 2021 because the inventory has rallied over 149% this yr (year-to-date) thus far.

Alternatively, Motilal Oswal has ‘Impartial’ ranking (goal value 1,700) on one other Rakesh Jhunjhunwala portfolio auto inventory Escorts, wherein the Massive Bull holds 4.75% stake as of September 2021.

The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint.

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