Rakesh Jhunjhunwala Portfolio Stocks: Jaguar Land Rover (JLR) owner Tata Motors Ltd rose 8% in intraday trading on Friday after reducing losses for the quarter ended March 31, 2022. Rakesh Jhunjhunwala, the stock jumped in the first trade on Friday to touch a maximum of Rs 403 per share on the BSE. Big Bull Jhunjhunwala owns 3,92,50,000 shares in the Indian market, giving it a 1.18% stake in the Tata Group company, according to the company’s latest corporate filing on the BSE.
Tata Motors Ltd reported a small loss for the fourth quarter on Thursday, as luxury car makers benefited from increased demand for its vehicles and were able to keep up with rising costs.
Domestic Auto Major reported a combined net loss of Rs 992.05 crore for the fourth quarter ended March 2022, compared to Rs 7,585.34 crore in the same period last fiscal, Tata Motors said in a regulatory filing on Thursday.
Earlier, Tata Motors raised prices at least four times in FY2022.
For the quarter ended March 31, Tata Motors’ core costs fell 8.8% to Rs 475.90 billion ($ 6.15 billion).
The consolidated net loss was Rs 10.33 billion, compared to Rs 76.05 billion a year ago, when sales suffered due to semiconductor deficit and supply chain disruption.
Last month, rival and the country’s top car maker Maruti Suzuki India Ltd lost its quarterly profit margin estimate as lower prices and lower sales promotion helped offset the impact of higher raw material prices.
What do brokers say?
Meanwhile, although brokerage firms have lowered their target price for shares of this Tata group after Tata Motors introduced a mixed bag in the recently concluded quarter, they have remained bullish and maintained purchase ratings.
Brokerage firm ICICI Securities has lowered its target price, but maintained its buy rating. It has given a buy call with a target price of Rs 677. This translates into an 81% increase in closing price of Rs 372 per share on May 12. It was thought that FCF had increased its profitability better than expected and Tata Motors’ operational performance was slightly ahead of its expectations.
“With the change in the CV cycle, TTMT (being the market leader in domestic CVs) is likely to benefit from improved margins. % Of the stock. Keep buying with the revised target price of Rs677, “said ICICI Securities.
Brokerage house Motilal Oswal May 12 closed at Rs 372 per share, up 30%.
Although the brokerage firm reduced its consolidated EPS estimate for FY 23/24 by 12%, it maintained a buy rating on Tata Group shares with a target price of Rs 485 per share. Motilal Oswal is behind the reduction in consolidated EPS estimates due to the volume improvement of JLR due to slowdown in lockdown and semiconductor supply in China.