Almost after four days of decline, the Tata Group company Tata Motors’ shares have been trading higher today and also become the top gainer at stock at open. The stock has been negative last week on the back of JLR chip shortage reports and likely negative EBIT margins in the second quarter.

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Tata Motors stock at around 01:25 is trading half a per cent higher to Rs 308 per share on the BSE, as compared to a 0.02 per cent decline in the S&P BSE Sensex. The counter jumped over 1 per cent to Rs 309.9 apiece on the BSE. It touched Rs 311.9 per share which is a day’s high level.

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The scrip is one of the favourites of an ace investor Rakesh Jhunjhunwala, who is also termed as the Big Bull of the stock market. He holds 42,750,000 shares, comprises a 1.3 per cent stake in the company as of March 2021, as per the data available on the BSE.

Tata Motors on Wednesday held a conference call with investors to revive their sentiments, wherein it clarified that the chip shortage is an industry issue, and the company has no plans to delay launches. 

The company on Tuesday in its filing to exchanges had said that the UK-based subsidiary Jaguar and Land Rover (JLR) sees negative EBIT margin in the second half of the financial year 2021-2022, as well as the premium vehicle company is going through semiconductor chip shortage.

Despite some near-term pressures, Jefferies believes in a strong turnaround for Tata Motors. It adds, JLR is sanguine on demand and ability to deliver margin once shortages ease, moreover, JLR’s new launch pipeline also remains intact. It maintains a Buy rating with a target of Rs 435 per share.

The market analyst Simi Bhaumik had expected the stock would see correction around Rs 300-295 per share, however, suggested to hold the stock and pointed out it as buying opportunity to new investors for a target of Rs 400-450 per share in a long-term view.