In the third-quarter financial results, Tata Motors stock declined significantly by 9%. The company reported a decline of over 22% in net profit for Q3 FY25. This downfall has caused huge losses for investors, including renowned investor and chartered accountant Rakesh Jhunjhunwala. Jhunjhunwala lost over Rs 325 crore within minutes of the share price dropping.
Jhunjhunwala is one of the significant investors in Tata Motors. At the end of the April–June quarter of 2022, he held a stake of 1.09% in Tata Motors. That 1 percent stake cost around 3.62 crore equity shares. Over the years, his investment strategies have been closely watched by the market. His Tata Motors share has been a focal point of his extensive portfolio.
This decline in the share price of Tata Motors is not the only incident he has experienced with the company. Several loss incidents in shares have been faced by Jhunjhunwala through the Tata Group stock. But despite the loss, his resilience and long-term commitment to investment are part of his extensive portfolio.
In the year 2024, TaMo announced that they plan to demerge into two separate entities. One entity will be dedicated to commercial vehicles, while the other will focus on passenger vehicles. The appointed date for the demerger is around June 2025. Shareholders of the company are anticipating the strategic move. This move will bring focus to the operations and value to both business divisions. The effective date of the demerger is around October 2025. All things will be finalized after discussion with the shareholders, creditors, and regulatory approvals.
The recent decline in the price of shares has led to a significant loss for investors, especially Rakesh Jhunjhunwala. This crisis points to the volatility of the equity market and highlights the importance of resilience in the share market and long-term investment. Situations such as these negatively impact the investment market and portfolio value.
