Speaking on the fundamentals that augurs well for this Rakesh Jhunjhunwala portfolio stock, Santosh Meena, Head of Research at Swastika Investmart Ltd said, “Tata Motors Ltd. is one of the biggest beneficiaries of the ICE to EV transition because of its first-mover advantage and synergistic benefits from other group companies. The company in the Q4 FY22 result had witnessed a recovery in Indian markets, due to robust demand for PV and recovery in CV business. However, due to lockdowns and the risk of recession in China, the JLR is seeing near-term pressures.”

Expecting hinderance in Tata Motors share price rally to become a passé in long term, Santosh Meena of Swastika Investmart said, “The semiconductor shortage and cost inflation are a hindrance to achieving full results. Nevertheless, these headwinds will subside in the medium term, the company is poised to perform well in both the Indian and global markets and the company’s free cash flows will help the company to achieve its deleveraging targets. The May 2022 numbers have been very positive and the monthly domestic PV and EV sales are the highest for the company since its inception. Thus, we remain positive about the company for the long-term time horizon.”

On Tata Motors share price chart pattern, Sumeet Bagadia, Executive Director at Choice Broking said, “Trend in Tata Motors shares have turned from ‘sideways down to sideways up’ and the stock may give sharp upside movement after giving a close above ₹470 to ₹480 levels. In current pattern, this Tata group stock is trading in the range of ₹390 to ₹480 range. Those who have this stock in their portfolio are advised to hold the stock with stop loss at ₹390 whereas fresh investors can buy Tata Motors shares at around ₹325 maintaining stop loss at ₹390 apiece levels.”

Sumeet Bagadia of Choice Broking said that any dip in this Tata group stock should be seen as buying opportunity till the stock is trading in the range of ₹390 to ₹480 levels.

Tata Motors May 2022 sales

In May 2022, Tata Motors has reported 204 per cent year-on-year (YoY) rise in total domestic sales as in May 2022, Tata Motors reported total domestic sales of 74,755 units against total domestic unit sales of 24,552 units in May 2021. Tata Motors Limited sales in the domestic & international market for May 2022 stood at 76,210 vehicles, compared to 26,661 units during May 2021.

Domestic sale of MH&ICV in May 2022, including trucks and buses, stood at 12,056 units, compared to 3,241 units in May 2021.

Total sales for MH&ICV Domestic & International Business in May 2022, including trucks and buses, stood at 12,810 units compared to 4,276 units in May 2021.

Rakesh Jhunjhunwala shareholding in Tata Motors

As per Tata Motors shareholding pattern for Q4FY22, Rakesh Jhunjhunwala holds 3,92,50,000 shares, which is 1.18 per cent of total paid-up capital of the company.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.