The largest Insurance company, Life Insurance Corporation (LIC) of India has increased its stake in the Tata group automobile company. In the last quarter, it held 16,59,48,741 shares which represented a 4.997 per cent stake in the company.
As per the latest shareholding pattern of Tata Motors, the state insurer has increased its holding to 16,61,98,741 equity shares which now represents a 5.004 per cent stake.
The shares of Tata Motors Limited were trading 1.5 per cent lower at Rs 415 levels till the afternoon on Thursday. The stock has been on a downward trend for quite some time now. It reached a 52-week high of Rs 536.70 in November last year. Currently, it is trading at a discount of 22 per cent from those levels.
However, Global brokerage firm Jefferies is bullish on Tata motors and has given a ‘Buy’ call with a target of Rs 540 per share on a long-term basis, which represents an upside of 30% from the current levels.
“Notwithstanding the near-term macro challenges for JLR (Jaguar Land Rover), we continue to like Tata given a strong cyclical recovery in Indian trucks and PVs, an improved franchise in Indian PVs, and a strong EV focus,” said Jefferies.
Tata Motors, part of the Tata group, is a leading global automobile manufacturing company with a diverse portfolio that includes an extensive range of cars, sports utility vehicles, trucks, buses, and defence vehicles.
The company is yet to announce its Q2 results for FY23. However, in the previous quarter, they reported a total revenue of Rs 71,934 crores and a net loss of Rs 4,987 crores.
The company has a market capitalization of Rs 1,38,031 crore as of November 3rd, 2022. The promoters of the company hold a 46.4 per cent stake and have pledged 1.82 per cent.
Written By – Anoushka Roy
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