Tata Motors Share Price Falls As Analysts Expect JLR Volumes To Stay Under Pressure

Tata Motors Ltd.'s share price fell nearly 4% on Tuesday with analysts expecting volumes of its Jaguar Land Rover sales to remain subdued for financial year 2025. The outlook came after Tata Motors reported a 3% annual decline to 1,03,000 units for the July–September period.

Nomura, which has a 'buy' rating on Tata Motors shares, estimates annual sales of JLR to remain flat at 4,03,000 units in fiscal 2025. The brokerage has a target price of Rs 1,303 per share, implying a 40.43% upside from Monday's close.

Motilal Oswal Financial Services Ltd. retained its 'neutral' rating and Rs 990 apiece target price, which implied a 7% upside from Monday's closing price.

Meanwhile, the brokerage slashed revenue, Ebitda, and net profit estimates of JLR to 6.4 billion pounds, 958 million pounds, and 247 million pounds, respectively. The earlier estimates were 6.8 billion pounds, 988 million pounds and 269 million pounds, respectively, the brokerage said in a note on Tuesday.

Rise in cost pressure and electric vehicle ramp up would keep JLR margins under pressure for the financial year 2025, according to Motilal Oswal.

The company's production of its JLR witnessed an annual decline of 7% to 86,000 units in the second quarter. The decline in production was due to a key issue with the aluminium vendor, according to Emkay Global Research. The brokerage expects profitability at JLR to sustain with its deleveraging journey on track.

JLR is likely to be net–debt free in financial year 2025. The UK subsidiary highlighted that JLR had delivered strong improvements across financial/operational parameters in the last five years, despite flattish volumes amid a strong focus on profitability and leveraging the strength and image of its iconic brands, Emkay Global said.

The brokerage upgraded the stock rating to 'buy' from 'add', and retained the target price at Rs 1,175 per share, which implied a 26% upside from Monday's closing price.