The data showed that the big investor first won over the defeated automaker Tata Motors. His name was not listed among the company’s key shareholders at the end of the June quarter. His wife Rekha Jhunjhunwala bought the water treatment company VA Tech Wabag
Shares of VA Tech Wabag are up 75 percent to Rs 187.75 on October 21 from Rs 107.55 on June 30. Tata Motors has gained 33 percent to Rs 130.25 during the same period. Previously, the scrip had reached its all-time high of Rs 605 in February 2015.
Brokerage HDFC Securities sees a solid lead for Tata Motors shares. “Going forward, once business normalizes in JLR / India, we expect margins to improve with an increase in the share of profitable models. A greater focus on profitable value-driven growth rather than market share along with streamlining costs and a reduction in capex could improve efficiencies and ensure strong cash flows, ”he said.
Additionally, at its recent annual general meeting, Tata Motors provided guidance on its effort to be debt free in the next three years, providing strong visibility into future free cash flow generation.
Jhunjhunwala, who is also a key investor in other Tata Group firms such as Titan, Indian Hotels and Rallis India, had 4 million shares, or 1.29% stake, in Tata Motors at the end of the September quarter.
While his wife sold 50,000 shares of Titan, Big Bull kept its own stakes unchanged in Titan, Indian Hotels and Rallis, where their stakes stood at 4.43%, 1.05% and 10.31%, respectively.
As of September 30, Rekha Jhunjhunwala held 50 lakh shares, or an 8.04 percent stake, in VA Tech. In August, the company decided to raise Rs 120 crore by issuing preferred shares.
Consequently, the board had approved the issuance of 7.5 million shares at Rs 160 per share, the company said at the BSE filing.
Later, the company’s board of directors assigned 5 million shares to Rekha Rakesh Jhunjhunwala, 1.5 million to Basera Home Finance and 1 million to Sushma Anand Jain and Anand Jaikumar Jain.
The Jhunjhunwala also increased their stake in construction company NCC to 12.14% from 11.45% previously. The company’s shares have advanced 16 percent to 33.80 rupees since June 30.
It also increased its stake in Agro Tech Foods, Delta Corp, Jubilant Life Sciences, TV18 Broadcast and Lupine. Except for TV18 Broadcast, whose shares have fallen 17 percent since June 30, others have risen as much as 43 percent during this period.
Prabhudas Lilladher has a ‘buy’ rating on Lupine with a price target of Rs 1,085, while Phillip Capital is positive on Agro Tech Foods with a target of Rs 815.
Phillip Capital said Agro Tech Foods’ food business contribution should increase from 32 percent of sales in the first quarter of fiscal year 21 to 48 percent in fiscal year 23.
On the other hand, Jhunjhunwala has reduced stakes in companies such as Escorts, Federal Bank and Prakash Industries during the quarter.
His net worth stood at 13,272 crore as of Thursday, down from a March low of 9,169 crore, data available on Trendlyne showed.
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