rakesh jhunjhunwala: Tata Motors surges as Big Bull & marquee investors meet top brass

MUMBAI: Shares of Tata Motors surged in trade on Monday as the company’s management began its five-day-long meetings with some of the biggest names from the investing world.

The company in an exchange filing said that it would be holding meetings with investors such as Rakesh Jhunjhunwala’s Rare Enterprises, Blackrock Investment, Abu Dhabi Investment Authority, Franklin Templeton Investments, JP Morgan Asset Management and others.

The meeting comes after the company poor earnings for the March quarter and the management may hold discussions around the company’s outlook on the Indian business and Jaguar Land Rover.

Tata Motors post its earnings said that it expects near-term challenges in both the businesses due to semi-conductor shortages and the ongoing second wave of the COVID-19 pandemic in India.

“We expect Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter. The business has demonstrated strong resilience in the face of adversity and its fundamentals are strong,” the company had said.

The Indian business has been hit by the onset of the second wave with sales in May plummeting 38 per cent on a month-on-month basis. “Consequently, the first half of the year is expected to be relatively weak. Sequential improvement in overall performance is expected from the second quarter of FY22,” the company had said in its earnings statement.

For investors, though, the more talking points will center around the future of Jaguar Land Rover and its sharp pivot towards electric vehicles. The company in February had announced a major revamp of strategy under ‘Reimagine’ wherein the company will produce all Jaguars and Land Rovers as electric vehicles by 2025.

The strategy’s aim is to catch up with industry leader Tesla, which is also entering India, and other incumbent automobile manufacturers such as Ford.

Investors are likely to seek more information from the company on the electric vehicle pivot, especially, as some analysts have raised concerns that the company may already be behind the curve on the e-vehicle segment.

Source link


Brent crude rallies to highest level since March ahead of Opec+ decision

Brent crude rose above $70 a barrel as Opec and its allies were set to decide whether to unleash more barrels into a...

The Five Benefits of Garage Floor Coating

The Five Benefits of Garage Floor CoatingAround 66% of new homes constructed in the US have a garage or carport added. storage. But do...

Decentralized Uber: Here’s How I Built It With Status.im, Waku, and Vue.js

“Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work...