Tata Motors Share: In the Indian stock market, when veteran investor Rekha Rakesh Jhunjhunwala hints at selling her stake in a company, that company comes into the limelight. Recently, this stock has declined by 4% after the Jhunjhunwala family hinted at a possible exit from Tata Motors. Tata Motors, which has given tremendous returns to investors in the last few years. So is there still a chance to invest in this stock, or is it a sign of time to exit?

Veteran investor Rekha Rakesh Jhunjhunwala, who has achieved multi-bagger returns in the last 4 years by investing in Tata Group's stock Tata Motors, is now indicating exit from this stock. During this period, this stock has increased by about 800%, which has given huge benefits to the investors.

Recently, Tata Motors' stock fell by 4%, falling from ₹ 928.10 on Monday to ₹ 893.90 on Tuesday. Due to this, the company's total market capitalization came down below ₹ 3.3 lakh crore. The Jhunjhunwala family did not appear in the list of major shareholders of the company in the September 2024 quarter, indicating that they may have reduced their stake.

Jhunjhunwala family's stake in Tata Motors
Rekha Jhunjhunwala's husband, late investor Rakesh Jhunjhunwala, bought 4 crore shares of Tata Motors in September 2020, when his name was first seen in the list of major shareholders. After his demise, Rekha Jhunjhunwala retained this stake. However, with her name missing from the latest corporate filings, it is believed that she may have sold her stake.

As per the rules of the Indian market regulator, companies have to submit the list of their shareholders at the end of every quarter. If the stake of an investor falls below 1%, then he does not need to be included in the list of major shareholders.

Tata Motors' JLR Performance
Tata Motors subsidiary Jaguar Land Rover (JLR) sold 1,03,108 units in the second quarter of FY25, a decline of 3% compared to the same period last year. The company said that this reduction in production was due to a disruption in the supply of aluminum. This decline affected the performance of the stock.

Analysts believe that JLR's sales are expected to improve, although the company also faces cost pressures and other challenges. Motilal Oswal expects JLR's margins to remain under pressure during FY24-FY26. Despite this, Emkay Global rates Tata Motors' long-term outlook as positive as the company is on track to become debt-free by FY25.

What should investors do?
Tata Motors has performed well in FY24, but some challenges may impact its growth in the future. While Motilal Oswal has given a target of ₹990 for the stock, Emkay Global has given it a 'buy' recommendation with a target price of ₹1,175.

UBS has lowered the price target on this stock to Rs 825 based on JLR production concerns, aluminum prices, and logistics issues. This is no longer a good sign for the stock, which is already scared of a lot of negative signals and bearish cues.