2 Rekha Jhunjhunwala Portfolio Stocks To Buy/Sell/Hold This Week

Nazara Technologies (NAZARA IN) and Tata Motors are the portfolio stocks of Rekha Jhunjhunwala, wife of late billionaire investor Rakesh Jhunjhunwala. Nazara Technologies has received a hold call from Prabhudas Lilladher and Tata Motors has received a buy recommendation from KRChoksey.

Nazara Technologies Share Price Target

The brokerage firm Prabhudas Lilladher has recommended to hold the stock for a target price of Rs 840. "We cut our FY24E-FY26E EBITDA estimates by ~3-4%, amid persistent weakness in Kiddopia and Ad-Tech business. Despite downgrade at operating level, our FY24/25E EPS estimates have witnessed an upgrade of 14%/6% as we raise our other income assumptions and re-align our tax rate for FY24E given write back during the quarter.

Nazara's operational performance was broadly in-line with our estimate with EBITDA margin of 9.4% (PLe 8.3%) while PAT beat was driven by tax credit of Rs 13 Mn (PLe tax outgo of Rs47mn) arising from demerging of the fantasy sports business of Halaplay into OpenPlay," said the brokerage.

"Despite ongoing challenges in Ad-Tech (loss of a large client), Kiddopia (stagnant subscriber base) and Real Money Gaming (GST levy of 28% on full bet value), return of BGMI and strong traction in SportsKeeda is likely to drive Sales/EBITDA CAGR of 17%/34% over FY23FY26E. Retain 'HOLD' rating on the stock with a DCF based TP of Rs840 (earlier Rs836). Post recent fund raise, Nazara has cash balance of Rs13.3bn (cash per share of Rs183 on diluted equity base) and we believe capital allocation decisions from hereon will be a key to re-rating," the brokerage note stated.

During the September 2023 quarter or Q2FY24, Rekha Jhunjhunwala held fully paid-up equity shares of 65,88,620 or 8.99% stake in the company.

Tata Motors Share Price Target

The brokerage firm KRChoksey has recommended to buy the shares of Tata Motors (TTMT) at the current market price for a target price of Rs 784.

"TTMT is looking at a strong H2FY24E and beyond due to improvements in all 3 business verticals. JLR will see higher volumes, and an improved product mix leading to a higher EBIT margin guidance for FY24E.TML-CV will continue to see double-digit EBITDA margins backed by strong realizations. The TML-PV margins are likely to improve due to new product launches done recently and improvements in EV margins.

With all 3 businesses firing in the right direction, TTMT is well poised to deliver a solid performance going ahead. On a consolidated level, we increase our EBITDA estimates for FY24E/25E by 4.1%/6.3%, respectively to factor in the revised JLR margin guidance.

We expect the company will grow at a CAGR of 17.0%/44.5% in revenues/EBITDA over FY23-25E. We value JLR at 2.8xEV/EBITDA (2.4x earlier), Chery-JLR JV business at 2.4xEV/EBITDA, TML-CV at 13.0xEV/EBITDA(unchanged),andTML-PV business at 14.5xEV/EBITDA(unchanged), and a value of INR28 per share for the remaining stake inTataTechnologies after the pre-IPO sale and arrive at a target price of INR 784 per share(from INR 743 earlier), implying an upside of 15.2%. Accordingly, we maintain our"BUY" rating on the shares of TataMotors," said the brokerage in a note.

During Q2FY24, Rekha Jhunjhunwala held fully paid-up equity shares of 5,32,56,000 or 1.60 stake in the auto company.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.