Rakesh Jhunjhunwala said that there will be a tremendous bull run in steel stocks due to the rise in commodity cycle.
Big Bull in the stock market and among the most successful investors in the country, Rakesh Jhunjhunwala are bullish on Metal Stocks. Rakesh Jhunjhunwala said that there will be a tremendous bull run in steel stocks due to the rise in commodity cycle. This is the reason why he has bought 2.5 million shares of Tata Steel in a bulk deal.
Rakesh Jhunjhunwala has bought 2.5 million shares of Tata Steel at a price of Rs 1181.90. However, his investment company Rare Enterprises has sold millions of shares of Tata Steel. In such a situation, it is being said that it is a rebalancing of Rakesh Jhunjhunwala’s portfolio. Shares of the company have risen by more than 2% since the news of Jhunjhunwala’s purchase of Tata Steel shares.
Let us tell you that Tata Steel shares have given more than 165% returns to investors in the last 6 months, while the shares of the company have risen 299% in the last one year. Last year, on May 11, 2020, the price of one share of the company was Rs 262 which has now increased to more than Rs 1206. That is, the company has given 340% return to investors in 1 year.
That’s why Jhunjhunwala is bullish on Tata Steel,
Rakesh Jhunjhunwala says that metal stocks are under-valued. Stocks of Tata Steel in particular are highly under-valued. He said Tata Steel is in a much better position than its peers, despite the company’s stock prices being lower at current levels. He said that the commodity cycle has mocked the valuation of metal stocks.
Rakesh Jhunjhunwala said that there will be a tremendous jump in the prices of metal stocks when the commodity cycle turns. Let us tell you that Jhunjhunwala reduced its stake in Titan Company, Tata Communications, VIP Industries, ION Exchange, Indiabulls Real Estate and Firstsource Solutions in the March quarter.
