Rakesh Jhunjhunwala stock: This Tata Group company shares gain on recovery hopes; counter up 16% in month

This Rakesh Jhunjhunwala-backed Tata Group company — Tata Motors shares — jumped 3 per cent to Rs 342.50 per share, near 52-week high, on the BSE intraday trade on Monday amid recovery hopes.

The counter in the last one month had outperformed the market by surging around 16 per cent, as against 2 per cent gain in the S&P BSE Sensex, while 5.5 per cent rise in the BSE Auto sector index.

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Tata Motors is the second favourite stock of an ace investor Rakesh Jhunjhunwala, who is also termed as the Big Bull of Indian stock market. He held 37,750,000 shares that aggregates to 1.1 per cent stakes in the company, as per the shareholding pattern available on the BSE.

The stock of Tata group automobiles company had hit a 52-week high of Rs 361 on June 15, 2021. It had touched a record high of Rs 606 on February 3, 2015.

The auto major on Friday said its total domestic wholesales increased 28 per cent year-on-year (YoY) to 55,988 units in September 2021 as against 44,410 units in September 2020.

The index heavyweight’s total passenger vehicle sales in the domestic market stood at 25,730 units last month, compared with 21,199 units in the same month last year. Commercial vehicle sales in the domestic market at 30,258 units, up 30 per cent from 23,211 units in September 2020, it said.

In the electric vehicle (EV) segment, Tata Motors for the second straight month crossed the 1,000 unit’s milestone to register its highest ever monthly and quarterly sales. EV sales recorded nearly a three-fold growth with the rising acceptance and popularity of the Nexon EV and Tigor EV, it further said.

The company said, the demand for cars and SUVs is expected to remain strong in the forthcoming festive season going forward; however, the supply situation for electronic components may continue to witness challenging time, it added.