Another stock holding Rakesh Jhunjhunwala’s holdings may turn silver in the coming days. According to the brokerage house, the shares of Tata Motors can rise by 15 percent. Rakesh Jhunjhunwala has the largest holding in Tata Motors after Titan in the Tata group. At present, Jhunjhunwala’s holding in Tata Motors is 1.3 per cent, which as of today’s valuation works out to about Rs 1500 crore.
Why Tata Motors stock will rise?
The recovery in the domestic and overseas markets and the strategy of focusing on the sale of electric vehicles of its luxury unit Jaguar Land Rovers can give a good momentum to Tata Motors. Jaguar Land Rovers aims to establish itself as a fully electric brand by 2025. Motilal Oswal has given ‘BUY’ rating for Tata Motors. At present, its shares are trading at Rs 350 but Motiwal Oswal has kept its target price at Rs 405. That is, it can increase by up to 15 percent.
Better revenue flow will reduce the debt of the company
The focus of Tata Motors is on electric vehicles. Analysts believe that the cyclical recovery in its domestic and overseas business will help the company reduce debt. This will strengthen the cash position of the company. According to Motilal Oswal, due to the second wave of Corona, there has been a decline in its passenger vehicle business, but the commercial business remains strong. The company has also made a comeback in the personal vehicle segment. It has rapidly increased its stake.
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Jaguar plans to turn electric car brand
The company wants to convert its luxury car brand into a completely electric brand. The company will launch six new electric Land Rover models within the next five years. Jaguar has said that it will achieve revenue of 30 billion pounds by 2025-26. Rakesh Jhunjhunwala, considered the Big Bull, bought shares of Tata Motors in the third quarter. After this, its shares have increased by 256 percent. Jhunjhunwala holds 1.3 percent stake in this company. The share price of Jhunjhunwala at the current market price is Rs 1500 crore. Shares of Tata Motors had a huge fall last year when it fell to Rs 65 per share after the first wave of COVID.
(Stock recommendations in the story are based on information provided by research analysts and brokerage firms. Financial Express Online does not take any responsibility for any investment advice. Please consult your advisor before investing.)
(Article: Kshitij Bhargava)
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