Tata Motors Stocks: Stocks of Tata Motors included in the portfolio of veteran investor Rakesh Jhunjhunwala are seen selling on May 19. Tata Motors shares have fallen 4.5 per cent to Rs 312 today. Whereas it closed at Rs 332 on Tuesday, the day of the quarterly results. In fact, Tata Motors has incurred a loss of Rs 7,585 crore in the March quarter. At the same time, the management has said that due to the second wave of Corona, once again the business can be affected by the deteriorating situation. This has disturbed the sentiment of investors. However, some brokerage houses are still positive about the stock outlook.
Rakesh Jhunjhunwala has more than 4 crore shares
Tata Motors is also among the stocks of choice of Rakesh Jhunjhunwala. Last year, he invested heavily in Tata Motors due to the company’s growing outlook. Currently, he has a 1.3 percent stake in this auto company. Rakesh Jhunjhunwala owns 42,750,000 shares of Tata Motors, with a current value of Rs 1,346.6 crore.
Losses decreased in March quarter
Tata Motors incurred a loss of Rs 7,605 crore in the March quarter. While the expert had expected the company to turn a profit in the March quarter. However, this deficit is less than the year-ago quarter. Tata Motors had a loss of Rs 9,894 crore in the same quarter a year earlier. The company’s revenue grew 41.7 percent to Rs 88,628 crore in the March quarter. Whereas in the same quarter last year, the company’s income was Rs 62,492 crore.
In the entire financial year ended in March 2021, Tata Motors has incurred a net loss of 13,395 crores. During its last financial year i.e. FY 2019-20, companies incurred a loss of Rs 11,975 crore. Indian business has been better than expected. But JLR business performance has been lower than expected. Management has made a cautious commentary on JLR and Indian business.
COVID-19’s impact on business
Tata Motors Management has once again expressed concern over the deteriorating situation due to the second wave of Corona. This may affect the business of the company. So far in the first quarter of FY 2022, the second wave of corona virus has shown an impact on India volume. About 80 percent of the dealerships have been closed during this period. Sales have fallen by 50 per cent in April. In May 2021, worries have increased. This may affect the performance ahead of the company.
What to say about a brokerage house
Brokerage house Motilal Oswal has set a target of Rs 400, recommending buying in the stock. According to the brokerage, COVID 19 is a concern but in the near term, the company will benefit from macro recovery, company specific volume / margin drivers. Brokerage house CLSA has also given a buy rating on Tata Motors shares and has set a target of Rs 450. Whereas Goldman Sachs has suggested a sale in Tata Motors. The target for the stock has been reduced to Rs 254.
At the same time, UBS has set a target of Rs 360, giving a neutral rating on Tata Motors. Whereas Nomura has advised Tata Motors to reduce yoyers and has set a target of Rs 313. Brokerage house CITI has given a buy rating and set the target for the stock at Rs 395.
(Note: We have given information here based on the performance of the company and the report of the brokerage house. The market has its own risks, so get the opinion of experts before investing.)
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