Mutual Funds Bittersweet Love Affair For Tata Stocks; Rs 3,024 Crore Bets In Tata Power, TCS Logs Selling

Mutual Funds showed mixed appetite for billion-dollar-worth conglomerate Tata Group-backed stocks in August 2023. Where Tata Power received the most love, shares like Tata Consumer Products and Tata Chemicals witnessed the fondness fading by a certain portion. Not only that AMCs like UTI MF increased their holding in Tata giants like Tata Steel, but at the same time, Axis AMC pulled out some money from Tata Consultancy Services (TCS) which is the second largest company after Reiance in terms of market share in the country. The Group's power engine Tata Power received bets worth Rs 3,024 crore from MFs during the month.

Here's how much mutual funds invested in Tata stocks during August:

1. Tata Power:

Data from ICICI Securities showed that Tata Power was the only Tata stock where mutual funds increased their holdings in August. The MFs raised their shares to 12.34 crore in Tata Power stock in August compared to 10.84 crore shares in July. Also, their market value in Tata Power rose to a huge Rs 3,024 crore versus Rs 2,566 crore in July 2023.

Meanwhile, Fisdom Research's data also revealed that Tata Power has given over 11% returns to MFs in 1-month.

On Friday, Tata Power shares traded in the range of Rs 268 apiece to Rs 264.70 on BSE. On September 14, the company through its subsidiary Tata Power Renewable Energy signed an agreement with Xpro India for developing a 3.125 MW AC Group Captive Solar Plant.

Tata Power is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 14,339 MW. The Company has a presence across the entire power value chain - generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution, and trading.

Year-to-date, Tata stock has gained by 24.5% on BSE.

2. Tata Consumer Products:

This Tata Group's FMCG player was among the top selling by mutual funds in large-cap space. In August, MF's shareholding in Tata Consumer dipped to 569 lakh shares from 595 lakh shares in July, while their market value also squeezed lower to Rs 4,752 crore in the company versus Rs 5,112 crore in July month, as per ICICI Securities data.

However, Fisdom's data showed that Tata Consumer Products shares gave 3.4% returns to MFs in 1-month.

On Friday, Tata Consumer shares traded in the range of Rs 888 apiece to Rs 873.75 apiece on BSE. YTD, the stock has gained by nearly 15%.

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices,
ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. It has a consolidated annual turnover of ~Rs 13,783 crore with operations in India and International markets currently.

Tata Chemicals:

Under the midcap basket, as per ICICI Securities data, Tata Chemicals was among the top selling stocks. MF shareholding dropped to 184 lakh shares in August versus 205 lakh shares in July, while the market value shrunk to Rs 1,958 crore versus Rs 2,172 crore in July in the company.

Fisdom's data showed that Tata Chemicals has given 4.10% returns to mutual funds in 1-month.

On BSE, the stock is currently in the range of Rs 1080 apiece to Rs 1063.50 apiece respectively on Friday. The stock has however advanced by over 13% YTD.

Tata Chemicals is a leading supplier of choice to glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary company Rallis India Ltd. Tata Chemicals has world-class R&D facilities in Pune and Bangalore.

Tata Consultancy Services (TCS):

TCS is not just the flagship of Tata Group but also the behemoth in the Indian IT sector. On Friday, the stock touched a new 52-week high of Rs 3,603.15 apiece on BSE. YTD, TCS shares have jumped by more than 10%.

Brokerage ICICI Securities data highlighted that in August 2023, AXIS AMC trimmed its holding in TCS to 187 lakh shares versus 193 lakh shares in July. Hence, Axis AMC's market value dipped to Rs 6,277 crore during August in TCS versus Rs 6,600 crore in July.

Meanwhile, SBI AMC cut its shareholding in TCS shares to 377 lakh in August 2023 versus 378 lakh in July 2023. The market value in TCS also slipped gradually to Rs 12,644 crore in the month under view, as against Rs 12,944 crore in July 2023.

However, UTI AMC was optimistic about TCS shares and accordingly increased its shareholding to 137 lakh shares in August compared to 134 lakh shares in the previous month. The market value of UTI AMC in TCS also surged to Rs 4,608 crore as against Rs 4,571 crore in July.

TCS has also given nearly 4% returns to MFs in 1-months, as per Fisdom data.

TCS has a market value of over Rs 13.16 lakh crore, becoming the second largest firm and largest IT firm in India after Reliance Industries.

TCS is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 55 years.A part of the Tata Group, India's largest multinational business group, TCS has over 614,000 of the world's best-trained consultants in 55 countries.

Tata Steel:

As per the data, only UTI AMC made changes in its shareholding in this Tata-backed company. The said AMC's shareholding increased to 13.76 crore in Tata Steel in August as against 12.42 crore in July month. The market value also soared to Rs 1,691 crore as against Rs 1,530 crore in July 2023.

On BSE, Tata Steel shares traded in the range of Rs 132.80 apiece to Rs 133.30 on Friday. The stock has climbed over 9% YTD.

Should you buy or sell these Tata stocks?

As of now, Kotak Institutional Equities has given:

- REDUCE on Tata Chemicals with a fair value of Rs 990

- ADD on Tata Consumer with fair value of Rs 870

- Sell on Tata Power with a fair value of Rs 200

- ADD is given on TCS with fair value of Rs 3,400

- Buy on Tata Steel with fair value of Rs 135

On the contrary, Antique Stock Broking has liked two Tata stocks. It recommends as of now:

- Buy on Tata Steel for a target price of Rs 149

- Buy on Tata Power for a target price of Rs 275

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.