Know which Rakesh Jhunjhunwala-owned stock has shot-up nearly 6% in todays trade; know key risk

Automotive manufacturing company, Tata Motors share price today closed at Rs 302.85, up by Rs 16.6 or 5.7%. Tata Motors is a stock that is a part of ace Indian investor Rakesh Jhunjhunwala portfolio. The Auto sector has been in focus today and Auto stocks have been top gainers on Nifty today. Mahindra & Mahindra share price is the top gainer on Nifty while Maruti Suzuki gained nearly 5%.

Technical Analysis on Tata Motors:

Technical Analyst Simi Bhaumik says investors should Buy Tata Motors shares on all dips. The first target on Tata Motors is Rs 325 and second target is Rs 340. Closing above Rs 340 will ensure that further upmove is possible. The Tata Motors stop-loss is just below Rs 280.

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Big Bull Rakesh Jhunjhunwala holds 1.29% stake or 4 cr shares in Tata Motors. The Big Bull is known for buying quality stocks in his portfolio that have given him multibagger-type returns.  Tata Motors was a new addition in Rakesh Jhunjhunwala’s portfolio during Covid-19 pandemic period. Titan, Rallis and Tata Communications are some other Tata group stocks that Rakesh Jhunjhunwala holds in his portfolio. Tata Motors has multiplied over 5x in less than a year. Many analysts and Investors believe that the Big Bull Rakesh Jhunjhunwala has surely got this bet right. 

Tata Motors also owns 2 super British auto brands Jaguar and Land over. Sharekhan says that JLR’s management laid down its plans and strategies for the electrification of its iconic brands, Jaguar and Land Rover over the next decade. Jaguar is expected to be totally electrified by 2025 and the company should launch its first battery electric vehicle (BEV) in 2025 on a new dedicated architecture. Jaguar is expected to phase out of pure Internal Combustion Engine (ICE) variants by FY26, with total BEV mix rising over 60% by FY30. In respect of Land Rover, the company plans to introduce six BEV variants in the next five years through the family of its three models, viz. Defender, Discovery and Range Rover. With electrification to be the next motivation for the company over the next decade, JLR targets net zero carbon emission by 2039. 

Tata Motors Key Risks:

Tata Motors business is dependent upon cyclical industries – CV and PV. Moreover, the company’s business is present across the globe. Any slowdown or cyclical downturn in any of the locations, where the company has a strong presence, can impact its business and profitability