Experts and brokerage houses are considering the recent fall in Tata Motors as a good buying opportunity. He says that the long term and mid term outlook of the company is strong.
Rakesh Jhunjhunwala Portfolio Stock Tata Motors: Weakness is visible in Tata Motors, the strong auto share of Tata Group. The stock has fallen more than 1 percent and has come to a price of Rs 389. Despite strong fundamentals, this stock has seen a good correction in a month. This stock has weakened by about 21 percent in 1 month. However, experts and brokerage houses are considering this fall as a good buying opportunity. He says that the long term and mid term outlook of the company is strong. Due to having the largest market share in electric vehicles, the company will benefit further. At the same time, the order book of the company is also getting stronger due to the improving demand. Factors like pitch shortcut will also weaken further.
benefit of increased demand
Anuj Gupta, IIFL, VP-Research, says that Tata Motors is not only a strong stock but also a strong brand in the market. In the past, the stock has been affected due to chip shortage, COVID 19 and geopolitical risk. But after a significant decline, its valuation looks very strong. As the business environment will improve in the coming days. The business of the company will also be strong. Anyway, the company is continuously increasing the focus in the matter of electric vehicle. The company will also get the benefit of having the highest market share in EVs. He says that the stock should enter around Rs 370-380. At the same time, keep a target of 6 months for this from Rs 500 to Rs 550. Whereas put a stop loss of Rs 290.
Positive Triggers: Tata Motors has received a contract for 65 Electric Vehicles (EVs) from the Kerala State Electricity Board. The order includes 60 Tigor EVs and 5 Nexon EV SUVs.
Brokerage also advised
Brokerage house Macquarie has given investment advice in the stock of Tata Motors keeping a target of Rs 589. If you look at the current price of Rs 289, then the stock can give 50 to 51 percent return. On the other hand, brokerage house Emkay Global has given a target of Rs 575 while advising to buy in the stock. The company’s total income in the December quarter increased by 17 percent on a quarterly basis to Rs 72931.86 crore. Whereas the income has been lower by 4.50 percent on an annual basis.
Rakesh Jhunjhunwala holds 1.2% stake
Market leader Rakesh Jhunjhunwala owns Tata Motors Ltd. has a 1.2% stake. The company has a total of 39,250,000 shares in his portfolio, whose current value is Rs 1,546.5 crore. In the December quarter, he had raised 0.1 per cent stake in the company. He held 1.1 per cent stake in the company in the September and June quarters.
(Disclaimer: Investment advice in stocks is given by experts or brokerage houses. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)