Tata Motors shares fell 3.2% to an intra-day low of Rs 769.45. The stock was among the major losers in the Nifty 50 on January 09. The drop in share price came after its subsidiary Jaguar and Land Rover (JLR) reported a fall of 3% in retail sales at 106,334 units in the October to December quarter of FY25. However, the company reported an increase of 3% in wholesale sales in the same period. The wholesale units sold for the quarter under review stood at 104,427. Sequentially, the wholesale volumes were up 20% compared to Q2.
Tata Motors’s total commercial vehicle sales in Q3 FY25 stood at 95,770 units, down 1% on year and passenger vehicle sales at 139,829 units, up 1% year-over-year.
The brokerage firm Morgan Stanley has an equal weight rating on the stock, with a target price of Rs 990. This is 24.5% higher than the current market price of Rs 794.95. However, the target price is 16% lower than the 52-week high of Rs 1,179. Morgan Stanley said that the company’s wholesale volume growth was 2% higher than its estimates.
Another brokerage firm, Nomura said that Tata Motors will move from net debt of Rs 22,000 crore, which converts to Rs 60 per equity share in Q2 FY25 to net cash of Rs 86 per share by FY27. The brokerage firm has a buy rating on the stock with a target price of Rs 990.
However, UBS, a brokerage firm, maintained its sell rating on the stock with a target price of Rs 780. It sees sharp downside risks to the company’s FY26 guidance of 10% EBIT margin.
Tata Motors is expected to release its third quarter’s earnings on January 29, 2025, according to the BSE results calendar.
Tata Motors performance in Q2
During the last quarter, the company’s standalone net profit fell 62.4% year-on-year to Rs 477 crore in Q2 FY25 from Rs 1,270 crore in Q2 FY24. Revenue from operations decreased 16.3% on-year to Rs 15,518 crore in the second quarter of FY25 from Rs 18,542 crore in Q2 FY24. The de-merger-bound Tata Motors’ fall in revenue and profit was affected by slow consumer demand and seasonal factors, said the company in the earnings release.
In August 2024, Tata Motors announced that it would de-merge its business into two different listed entities,
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