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Despite Rakesh Jhunjhunwala paring stake in Tata Motors, analysts still bullish

Rakesh Jhunjhunwala portfolio: Growth in Chinese economy will have positive impact on Tata Motors sales in Land Rover and Jaguar variant that is a good sign for the company's quarterly numbers. (Bloomberg)Premium
Rakesh Jhunjhunwala portfolio: Growth in Chinese economy will have positive impact on Tata Motors sales in Land Rover and Jaguar variant that is a good sign for the company's quarterly numbers. (Bloomberg)

  • Rakesh Jhunjhunwala portfolio: Stock market experts listed out 5 strong reasons to buy Tata Motors shares and advised investors to keep the stock in one's portfolio for at least one year for massive gains

Rakesh Jhunjhunwala portfolio is closely followed these days by the retail investors as Big Bull's investments work as Rakesh Jhunjhunwala tips for them. However, if we go by the stock market experts' views, they seems to have remained unmoved by Rakesh Jhunjhunwala holding going down in Tata Motors share. Recently, news of 'Warren Buffett of India' trimming stake in Tata Motors from 1.29 per cent in March 2021 quarter to 1.14 per cent in June 2021 quarter, came into the public domain and despite that, market experts have recommended investors to buy this Rakesh Jhunjhunwala portfolio stock. In fact, they listed out 5 strong reasons to buy Tata Motors stocks and advised investors to keep the stock in one's portfolio for at least one year for massive gains.

Tata Motors share: 5 reasons to buy this Rakesh Jhunjhunwala share

Speaking on the reasons to buy this Rakesh Jhunjhunwala portfolio stock Ravi Singhal, Vice Chairman at GCL Securities said, "Tata Motors is a quality stock that one should have in one's portfolio. In fact, Rakesh Jhunjhunwala holding in the auto stock has gone down and the ace investor still holds stake in the company. After the launch of CNG variant vehicles in the passenger segment, MAruti Suzuki India is losing its market share to Tata Motors, India's Scrappage Policy coming in 2022 and Chinese growth fueling Land Rover and Jaguar sales are some of the major triggers that is going to aide sharp rise in Tata Motors share price rally."

Ravi Singhal listed out the following 5 reasons that will fuel Tata Motors share price rally in next one year:

1] After the launch of CNG variant vehicles in the passenger segment, Maruti Suzuki India Limited or MSIL is fast losing its market share to Tata Motors in the domestic market. This is going to reflect in the strong balance sheet of the auto company in coming quarters.

2] The Government of India (GoI) has announced to implement Scrappage Policy in 2022, which is expected to fuel its commercial vehicle segment in long-term.

3] Grwoth in Chinese economy will have positive impact on Tata Motors sales in Land Rover and Jaguar variant that is a good sign for the company's quarterly numbers.

4] Tata Motors has forayed into the Electric Vehicle (EV) segment and its Nexon EV edition sales in on rise, which is a good sign for company's financials.

5] Tata Motors management has announced to become a debt-free company in next 3 years, which is expected to play in the minds of Dalal Street investors.

Tata Motors share price outlook

Speaking on Tata Motors share price target in short-term Mudit Goel, Senior Research Analyst at SMC Global Securities said, "One can buy Tata Motors at around 290 as the counter has strong support at these levels. One can buy the auto stock at these levels for the immediate target of 340."

Advising stock market investors to buy Tata Motors for long-term Ravi Singhal of GCL Securities said, "One can buy Tat Motors at around 285 to 290 and keep on accumulating till it sustains above 250. The Rakesh Jhunjhunbwala stock is expected to go up to 430 in next 12 months. However, one must maintain stop loss at 250 while taking position in this counter."

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