Rakesh Jhunjhunwala reduces his share in Tata Group
As of June 2022, LIC’s stake in Tata Group has climbed to 4.96 percent.
According to current ownership patterns, Indian ace investor and stock market trader Rakesh Jhunjhunwala has reduced his interest in Tata Motors, while insurance behemoth Life Insurance Corporation of India (LIC) has raised its investment in the manufacturer between April and June 2022.
Rakesh Jhunjhunwala had a 1.09 percent holding or 3,62,50,000 shares in Tata Motors as of June 2022, according to BSE statistics, down from 1.18 percent in the previous quarter of March 2022.
Meanwhile, LIC’s holding in Tata Group has climbed to 4.96 percent, or 16,47,09,306 shares, in the first quarter of the current fiscal year, up from 4.75 percent in the January-March 2022 period.
Rakesh Jhunjhunwala’s portfolio and investments are widely observed by stock market players since he has earned significant fortune over the years through his stock market bets and techniques. He is known as the ‘Big Bull’ and the ‘Warren Buffet of India.’
Jhunjhunwala is a Chartered Accountant who runs the asset management business Rare Enterprises. He favours companies in the banking, technology, retail, and pharmaceutical sectors, to mention a few. According to Trendlyne, Rakesh Jhunjhunwala and Associates owns around 31 stocks and has a net worth of more than 28,600 crore.
Tata Motors shares are up 45 percent in a year, but the auto stock is down more than 10 percent in 2022 (YTD), compared to an 8 percent drop in the benchmark Sensex.
Tata Motors’ commercial vehicle and passenger car businesses are thriving. In June, wholesale quantities of commercial vehicles and passenger vehicles increased by around 14% and 4%, respectively. However, commercial vehicle numbers fell by 16% sequentially in Q1FY23, while passenger vehicle volumes climbed by roughly 6%. In addition, because electric vehicles are considered as the future of the auto industry, Tata Motors has increased its investment in the category.
Tata Motors and Renesas Electronics, a Japanese chip producer, announced a collaboration last month to design and build semiconductors. The collaboration will assist Tata Motors in weathering the worldwide car chip shortage, which has impacted company revenues and prompted in production cutbacks and even temporary plant shutdowns.
