On March 23, a Rs 1 lakh investment in a large-cap portfolio would have grown to Rs 5.06 lakh today.
The Tata Motors stock, which is owned by Rakesh Jhunjhunwala, has risen more than five times since its 52-week low in March of last year. The stock, which had fallen to Rs 63.60 on March 24 last year, soared to Rs 322 during intraday trade today, netting a 406% gain in less than a year. On March 23, a Rs 1 lakh investment in the large-cap stock would have grown to Rs 5.06 lakh today.
In the last year, the stock has increased by 100%. On the BSE, the stock closed at Rs 158.05 on February 19. A drop in Coronavirus cases around the world, the introduction of many Covid-19 vaccines, value buying at low prices, and consistent earnings growth have all contributed to the stock’s strong rally.
Meanwhile, during the September quarter of last year, the Big Bull purchased Tata Motors stock for the first time. In the second quarter of this fiscal year, Jhunjhunwala purchased 4,00,00,000 shares of the stock. According to shareholding data from the end of the September quarter, Jhunjhunwala purchased 1.29 percent of Tata Motors, or 4 crore shares.
During the quarter in which Tata Motors chairman N Chandrasekaran revealed the company would cut its debt to zero in the next three years, the ace investor purchased shares in the Tata Group. The automaker narrowed its loss quarter over quarter in the same quarter.
For 11 sessions, the Jhunjhunwala couple received Rs 18.4 crore per day with this stock.
Tata Motors recorded a net loss of Rs 314.5 crore in the second quarter of this fiscal year, compared to a loss of Rs 216.56 crore the year before. On a quarterly basis, however, it reduced its loss from Rs 8,437.99 crore.
The automaker’s earnings turnaround continued in the following quarter as well. Tata Motors posted a 67 percent year-on-year increase in its consolidated net profit for the quarter ended December 2020, to Rs 2,906 crore, thanks to higher revenue and cost-cutting steps.
After the jewellery sector re-enters growth process in Q3, Jhunjhunwala’s favourite stock reaches an all-time high.
Following Q3 earnings, Kotak Institutional Equities maintained a sell call on the portfolio, with a target price of Rs 180 per share. The company posted good operating results in both standalone and JLR businesses, but warned that JLR’s cost-cutting efforts may not be sustainable.
Tata Motors, on the other hand, has received a buy recommendation from ICICI Securities. The stock has a target price of Rs 389, according to the brokerage.
Rakesh Jhunjhunwala purchases a stake in this Tata Group company, and the stock rises 10%.