Billionaire investor Rakesh Jhunjhunwala sold 30 lakh shares of auto giant Tata Motors during the April-June quarter, the latest shareholding pattern available on the stock exchanges shows. The ace investor trimmed his stake in the company after holding steady for two quarters, prior to which he had increased his stake in the Tata group firm. Shares of Tata Motors have fallen 9.8% so far this year. During the April-June quarter, the stock fell 4.85% and now trades at Rs 450 per share. The auto giant’s stock has been trading weak since October 2021, in line with the headline indices.
Rakesh Jhunjhunwala, at the end of the April-June quarter, holds a 1.09% stake in Tata Motors with 3.62 crore equity shares. This is down from 3.92 crore equity shares the big bull held at the end of the previous quarter. With the recent sale of shares by Rakesh Jhunjhunwala, his holding in Tata Motors is down at the lowest since he first bought shares of the company in September 2020 after the stock was beaten down by the covid-19 pandemic.
While Tata Motors is expected to report strong growth in domestic business in the April-June quarter earnings, analysts at Motilal Oswal said that Jaguar Land Rover volumes have declined on-year basis due to chip shortages. “We estimate near EBIT breakeven supported by mix,” they added. However, the brokerage firm still remains bullish on Tata Motors with a target price of Rs 490 per share.
Prabhudas Lilladher is also bullish on the stock. “We maintain our positive stance on Tata Motors as the PV segment will likely gain further market share led by revamped portfolio, customer preference for SUVs and rising EV penetration, CV volumes will continue to benefit from the cyclical upturn, improving fleet utilization and freight rates, and revival in JLR and strong order book to benefit and drive FCF generation,” they added. The brokerage firm has a target price of Rs 555 per share on Tata Motors’ stock.
Rakesh Jhunjhunwala owns 3.62 crore shares of Tata Motors now. The value of the same at today’s opening price would be Rs 1,621 crore. Tata Motors is the fourth largest holding in Rakesh Jhunjhunwala’s portfolio based on the value of shares held.