Tata Motors, Trent, Tata Power, TCS, Titan: Tata shares on MF 'buy' list in March

Tata Motors Ltd, Tata Power Company Ltd, Tata Consultancy Services Ltd (TCS), Titan Company Ltd, Tata Capital Ltd and Tata Consumer Products Ltd were among a dozen Tata group stocks that saw mutual funds (MFs) increasing stakes in March, data compiled by Business Today from PRIME Database suggested.

In the case of Tata Motors Ltd, MFs held a 10.58 per cent stake in March against 9.67 per cent in February, as domestic funds bought a net Rs 1,458.13 crore worth of shares during the month.

At the end of March, MFs owned Rs 15,385.62 crore worth of Tata Motors shares against Rs 17,996.35 crore at the end of February, down Rs 2,610.73 crore, as the stock fell 22.6 per cent during the period.
PRIME Database calculated net buys by multiplying the change in February and March shareholding by the volume weighted average price during March.

PRIME Database suggested that MFs bought Rs 1,288.21 crore worth of TCS shares, raising their stake to 5.76 per cent from 5.61 per cent in February. MFs held Rs 49,125.70 crore worth of TCS shares at the end of March. The stock remained under pressure amid the AI narrative. Following TCS’ Q4 results, 18 brokerages suggested targets of up to Rs 3,350 on the IT major.

MFs were also seen upping stakes in jewellery maker Titan Company Ltd to 8.43 per cent from 8.30 per cent, buying a net Rs 458 crore worth of equities. Following the company’s Q4 business update, where it reported 46 per cent year-on-year growth in its jewellery business, analysts largely remained positive. MOFSL suggested a target of Rs 5,200, while Antique suggested a revised target of Rs 5,149.

Trent saw MFs raising sake to 13.99 per cent from 13.66 per cent, resulting in a net buy of Rs 412.91 crore, as per PRIME Database. Tata Power Company Ltd witnessed net MF buying of Rs 442 crore in March, as the institutional class raised its stake to 9.14 per cent from 8.79 per cent on a month-on-month basis. For the March quarter, Nuvama expected Tata Power to report a flattish adjusted PAT of Rs 1,052 crore against Rs 1,042.80 crore in the same quarter last year. Revenue was seen rising 8.78 per cent year-on-year to Rs 18,597 crore from Rs 17,095.90 crore, while Ebitda was seen at Rs 3,700 crore with an Ebitda margin of 19.9 per cent.

Tata Capital Ltd and Tata Consumer Products Ltd also saw MF buying of Rs 458 crore and Rs 200 crore, respectively, in March. Tata Motors Passenger Vehicles Ltd, Tata Technologies Ltd, Tata Communications Ltd and Tata Chemicals Ltd witnessed up to Rs 157 crore worth MF buying.

In the case of Tata Motors Passenger Vehicles Ltd, ICICI Direct said it assigned a 'HOLD' rating and valued the stock at Rs 370, citing uncertain demand and margin recovery at JLR despite robust volume growth in domestic operations, along with rising leverage on the balance sheet. Tata Steel Ltd, meanwhile, saw MF selling to the tune of Rs 400 crore.