Rakesh Jhunjhunwala portfolio: Tata Motors share price has surged around 85 per cent in 2021 as the auto stock shot up from ₹183 (close price on 31st December 2021 on NSE) to 342 apiece (close price on Monday on NSE). This Rakesh Jhunjhunwala portfolio stock has started to give upside move from August and has recently given a fresh breakout at ₹337 per stock levels.
According to stock market experts, chip shortage crisis is a short-term issue whereas long-term view of Tata Motors shares remains intact. They said that semi-conductor shortage is impacting wholesale volumes while retail volumes are seeing good recovery in all of the key markets. They advised investors to get advantage of this fresh breakout in Tata Motors shares as it may give sharp upside move in immediate short-term.
According to Motilal Oswal report, “JLR volumes started to show early signs of recovery from 2HCY19, driven by the new Evoque, a ramp-up in I-Pace, and course correction in China – which first got derailed due to the COVID impact and remains so due to the semi-conductor shortage. While the semi-conductor shortage is impacting wholesale volumes, retail volumes are seeing good recovery in all of the key markets (reflected in the order book of over 110k units). JLR is working with the supply chain for semi-conductors to ensure improvement from 3QFY22. In the case of India, the impact is low on the CV business as use is limited and demand is also low.”
On valuations of Tata Motors shares, Motilal Oswal report said, “Recovery is underway in all the three businesses of Tata Motors. While the India CV business would see cyclical recovery, the India PV business would witness structural recovery. JLR is witnessing cyclical recovery, supported by a favorable product mix. However, supply-side issues would defer the recovery process. While there would be no near-term catalysts from the JLR business, the India business would post continued recovery.”
Suggesting investors to buy this Rakesh Jhunjhunwala’s Tata group stock; Sumeet Bagadia, Executive Director at Choice Broking said, “Tata Motors shares have given fresh breakout at ₹337 and it may give sharp upside move in next few trade sessions. So, short-term positional investors are advised to buy this Rakesh Jhunjhunwala portfolio stock at current market price for the short-term target of ₹380. However, one must maintain stop loss at ₹330 while taking this positional call.”
Rakesh Jhunjhunwala shareholding in Tata Motors
As per Tata Motors shareholding pattern for April to June 2021 quarter, Big Bull holds 3,77,50,000 shares, which is 1.14 per cent of the total issued paid up capital of Tata Motors.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.