Tata Motors Share Price Hits Over 10–Month Low As Analysts Cut Target Price After Weak Q2
Jaguar Land Rover's 11% volume decline led to a 50% drop in Tata Motors' Ebitda, UBS Global Research said.
Tata Motors Ltd.'s share price hit the lowest level in over 10 months after analysts trimmed the target price subsequent to the company reporting a decline in net profit, against an expectation of a rise. Emkay Global Research, UBS Global Research, and Nuvama cut the target price as they factored in the automobile manufacturer's weak performance.
Jaguar Land Rover's 11% volume decline led to a 50% drop in Tata Motors' Ebitda, UBS Global Research said. "This (July–September) quarter's performance backs our caution and raises significant risk to optimistic estimates on the street."
UBS Global Research has a 'sell' rating on the stock.
The brokerage cut the target price to Rs 780 apiece from Rs 825 apiece, earlier. The target price implied a 3% downside from Friday's closing price.
Emkay Global Research cut the target price to Rs 1,000 compared to Rs 1,175 earlier, which implied an upside of 24% from Friday's closing price. The brokerage has a 'buy' rating on the stock.
Similarly, Nuvama cut the target price to Rs 767 apiece from Rs 1,010 apiece. The target price implied a 4% downside from Friday's close.
Tata Motors Q2 FY25 (Consolidated, YoY)
Revenue down 3.5% at Rs 1.01 lakh crore versus Rs 1.05 lakh crore (Estimate: Rs 1,03,005 crore).
Ebitda down 14.2% at Rs 11,736 crore versus Rs 13,676 crore (Estimate: Rs 14,636 crore).
Margin down 140 basis points at 11.6% versus 13% (Estimate: 14.20%).
Net profit down 10% at Rs 3,450 crore versus Rs 3,832 crore (Estimate: Rs 4,805 crore).
Tata Motors Share Price Today
Tata Motors Ltd. share price was 2.51% higher at Rs 825.65 apiece.
Share price of Tata Motors Ltd. declined 1.37% to Rs 792 apiece, the lowest level since Jan. 24. It erased all loss to trade 2.45% higher at Rs 805.45 apiece as of 10:58 a.m., as compared to a 0.47% advance in the NSE Nifty 50.
The stock gained as much as 25.45% in 12 months, and 5.42% on year-to-date basis. Total traded volume on NSE so far in the day stood at 1.21 times its 30-day average. The relative strength index was at 32.96.
Out of 36 analysts tracking the company, 21 maintain a 'buy' rating, 10 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 22.9%.
