Rakesh Jhunjhunwala Sold Tata Motor Stake , What to Do?
The Big Bull, Rakesh Jhunjhunwala has cut his stake in TATA Motors. He was holding 1.29 percent of stock and now the new stocks data says the holding has become 1.14 percent which is around 3,77,50,000 shares. This is not the only Tata stock, Jhunjhunwala has also reduced his stake in Titan Compan in April-June quarter this year.
We have already known about tatamotor stock getting affected from the supply point of view and beind the luxury cars market of 70+% , this segment is the backbone of TATA Motor. This was mostly because the ongoing semi-conductor chip shortage due to which it is taking a big toll on its JLR production. JLR’s production for the first quarter of 2021-22 was slipped by 30,000 units .
However this supply issues was said to be temporary issue but the fall in stock was seen. The stock slipped 40+ points.
Jhunjunwala is reducing the Titan stock for 3 consecutive time. Jhunjhunwala brought down his stake in Titan to 3.72 percent in June 2021 which was earlier 3.97 percent in the month of march 2021. While Rekha Jhunjhunwala’s stake is not seen a movement.
Well now the other part What to Do?
You should always have a research instead of jumping into or out of stock just because of the BIG investors.
Analysts are saying that weakness in Tata Motors shares is a good investment opportunity. From a long term point of view, investing in this stock can give good returns. There are many reasons for this. First, chip shortage is being seen across the industry. BMW and Daimler are also facing chip shortages. So the chip shortage problem is expected to end soon.
Tata Motors is trying to minimize the impact of chip shortage on its margins. This is the reason why JLR is using the currently available chip only in high-margin models. Second, retail demand remains strong. This leads to the gathering of a large number of orders. The company has already placed orders for more than one lakh units. This is the highest in the history of the company.
On other Hand, Motilal Oswal Analyst has set a BUY call for the tata motors with a Time frame of 1 Year with a Target of Rs 400.
Now The Levels of Tata Motor is Rs 360 Above which only the stock can show some solid and positive moment. Already the market has started to recieve correction so entry point is totally depending on your research and picks.
Tata Motor has pledged to bring down its net debt to near zero by 2023-24 which can be a start of its next solid phase and with electric vehicle in mind, the JLR can be its key to multibagger.
