In Wednesday’s trading session, shares of car maker Tata Motors experienced a sharp decline of 7% during the opening trade after the management expected slower growth in FY25. The share price of Tata Motors fell by 8.26% to reach an intraday low of Rs 960.10 on the NSE.
Auto major Tata Motors reported a consolidated net profit of Rs 17,529 crore for the quarter ended March 31, 2024, marking a 46% increase compared to the net profit of Rs 12,033 crore reported in the same period last year.
The company exceeded Street expectations of Rs 6,255 crore. Revenue for the quarter reached Rs 1.20 lakh crore, representing a 13.3% year-on-year (YoY) growth but slightly missing Street’s estimates of Rs 1.21 lakh crore.
Meet Subhasish Chakraborty, the founder of DTDC – He sold his mother’s jewellery to build Rs 2000 crore company; Know about his career, education, and net worth Tata Power shares fall over 2%; brokerages raise valuation concerns Tata Motors shares drop 5% on concerns about lower car sales, moderate growth outlook Tata Steel rallies 2% after Q1 net profit jumps 51%; Brokerages give a thumbs up
In Q4FY24, earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 17,900 crore, up 26.6% YoY, while EBIT reached Rs 11,000 crore, with all three auto businesses demonstrating strong performance.
Also Read
Equity inflows into MFs fall 16.4% MoM
The profit before tax (PBT) amounted to Rs 9,500 crore, and the net automotive debt decreased further to Rs 16,000 crore.
Brokerages on Tata Motors
Motilal Oswal on Tata Motors
The report highlights Motilal Oswal’s recent downgrade of Tata Motors (TTMT) to Neutral from BUY, citing concerns over stagnant JLR margins and a weak outlook for the India business. These concerns align with the current market trends, as TTMT faces impending headwinds despite its robust performance across key segments in FY24.
Motilal Oswal reiterates a Neutral rating on Tata Motors, with a FY26E sum-of-the-parts (SOTP)-based target price of Rs 955, down from Rs 970 previously.
The report has adjusted its earnings per share (EPS) estimates downward by 3% for FY25 and 5% for FY26. Tata Motors’ stock is currently trading at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA.
Motilal Oswal’s latest report on Tata Motors forecasts stable margins for Jaguar Land Rover (JLR) from FY24 to FY26. This expectation is based on several factors, including rising cost pressures due to increased investment in demand generation, a normalizing product mix, and the margin dilution expected from the electric vehicle (EV) ramp-up.
Also Read
Indegene sees stellar debut, lists at 45% premium; Read to know other details
Additionally, the report notes a moderation in demand for both commercial vehicles (CV) and passenger vehicles (PV) in Tata Motors’ India business. Motilal Oswal has factored in flat margins for the India business over the forecast period.
JM Financials on Tata Motors
JM Financial maintains a BUY rating on Tata Motors with a March 2025 sum-of-the-parts (SOTP) valuation of Rs 1,200, valuing the standalone business and JLR at 12x and 3.0x EV/EBITDA respectively. However, the report highlights the slowdown in key global markets as a point of monitoring.
According to a report by JM Financials on Tata Motors, in the fourth quarter of FY24, Jaguar Land Rover (JLR) reported an EBITDA of 16.3%, marking a 170 basis points year-on-year improvement driven by higher operating leverage and lower raw material costs.
Meanwhile, the India business, including commercial vehicles (CV) and passenger vehicles (PV), achieved an EBITDA of 10.5%, surpassing JM Financials’ expectations by 50 basis points. Supply normalization aided JLR in reducing its order backlog to approximately 133,000 units.
Although the US market remains robust, the demand environment in the EU has slowed down. Management plans to increase marketing spends to boost JLR’s order book. For FY25, the EBIT margin is anticipated to remain flat.
The company expects strong free cash flow generation to support investments in JLR’s electrification efforts, aiming to achieve a net cash position by FY25 (£0.7bn currently).
In the domestic PV segment, growth is expected to be driven by new launches and capacity ramp-up. Additionally, domestic CV demand is forecasted to pick up from the second quarter. Improving margins in both domestic CV and PV segments are viewed positively, with the net cash position in the Indian auto business providing comfort.
(Disclaimer: Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
Related Posts
Sega Sammy is the latest company to release its financials for the nine months ended December 31, 2017, and both sales and profits have dropped off.
Net sales dipped by 8.7 percent year-over-year to 260.8 billion yen ($2.38 billion), while profits fell by 62.3 percent to 13.8 billion yen ($126 million).
Despite that overall decline, Sega's entertainment division – which houses its video game operations – saw sales increase by 1.6 percent to 157.9 billion yen ($1.44 billion), and operating income rise by 12.3 percent to 17.3 billion yen ($157.9 million).
That upward shift was driven by a sharp rise in physical game sales, with Sega selling 14.28 million retail copies through Q1 to Q3 compa…
Mojang Studios has announced that a native PlayStation 5 version of Minecraft is releasing today and it is looking for preview testers. Those who own the PS4 version of the game will be able to access it.
In order to test this early version on PS5, users just need to go into the PS4 version of the game, click “Settings” and then click “Preview.” The preview is set to roll out at around 9:30 AM PT / 12:30 PM ET. Mojang also clarified that purchasing the PS4 version is currently the only way to play the PS5 version, and the reason for creating a native PS5 version is that it would run more smoothly on its hardware. Come from Sports betting site VPbet
This preview includes the new Tricky Trials update as well. Here,…
It’s been almost five years since a Star Wars movie was in theaters, but that’s going to change in 2026 when The Mandalorian & Grogu arrives just in time for the 49th anniversary of the franchise. At D23, fans discovered that the film has already started production, and the first footage was screened for the crowd.
Because the movie has only been shooting for a few weeks, there wasn’t a lot to show off. Lucasfilm started with a flashback to the first meeting of Pedro Pascal’s Din Djarin and Grogu from the first episode of The Mandalorian. From there, we saw a glimpse of their further adventures, which include going up against an AT-AT.
Grogu still leaves the shooting to his daddy, but they also spend some quiet time together to share some soup. Zeb from Star Wars Rebels …
Pocketpair’s survival game Palworld recently went into Steam Early Access and Xbox Game Preview, and the studio has already found itself in some hot water. Come from online casino bangladesh
At face value, Palworld looks like a Pokemon game with guns because of how similar the monsters look to the Nintendo property. Thanks to VGC, we know that some people have begun to accuse the studio of plagiarism.
…
With the launch of Apex Legends Season 13: Saviors just around the corner (and a recent leak that appeared to show the entire contents of the Saviors battle pass), speculation amongst Apex players as to the contents of the battle pass has been at an all-time high Come from bangladesh online casino . But the wait is now over–Respawn Entertainment just released the Season 13 battle pass trailer, and it has confirmed the legitimacy of last week’s leaks.
Season 13 will have a medieval fantasy theme with a futuristic sci-fi twist, with included weapon and legend cosmetics stylized to look like knight armor or dragon scales. While the two-minute trailer didn’t reveal all of Season 13’s secrets, it did give us a sneak peek at …
Poker has endured as a popular and immensely enjoyable card game because of how malleable it is. The purest form of poker is predominantly played in your hand, with you deciding on cards to discard and redraw in the hopes of creating a better hand than your opponents. Texas Hold’Em, by far the most popular variation on poker, eschews these rules by giving all players five shared cards on the table, and two cards in their hand to try and outwit other players with. A small change like this has a dramatic impact on how the game ultimately plays out, inviting the assumption that other small tweaks might have similar effects. Balatro operates directly in this space. It creates distinct scenarios through both deck building and randomization that force you to think about poker hands …
DirectStorage, one of the Xbox Series X’s biggest tech advancements, has now arrived on PC–well, sort of. Microsoft has announced in a blog post that the Xbox’s DirectStorage API is now available on PC, but it may be a while until players can get their hands on PC games that actually use the tech, The Verge reports. Come from Sports betting site VPbet
Microsoft’s DirectStorage technology cuts down on game load times and gives developers the potential to build even more detailed game worlds, by streaming data straight from a NVMe solid state drive to the GPU, without the CPU needing to decompress it first.
…
JSW Infrastructure shares listed at 20.16% premium over the IPO price on bourses on Tuesday. The share debuted at Rs 143 on the NSE, as compared to the issue price of Rs 119. The investors have made a profit of Rs 24 per share as the scrip gave more than 20% returns to investors on the listing.
Also Read
IPO Scorecard for September 2023; Track gains since listing
“The IPO was subscribed 37.37 times, which is a strong indication of investor interest. The company’s fundamentals are also strong, with consistent revenue and profit growth in recent years. Additionally, the company is well-positioned to benefit from the growing Indian economy. Overall, the listing of JSW Infrastructure was a success. The company’s strong fundamentals and good subscr…
Kolte Patil’s shares witnessed a remarkable surge of almost 10% on Wednesday, April 10. This surge followed shortly after brokerage firm Motilal Oswal initiated coverage on the stock, along with a bullish ‘buy’ recommendation.
According to Motilal Oswal’s analysis, the target price for Kolte Patil has been set at Rs 700, indicating a potential upside of 34%.
At the opening bell, Kolte Patil shares were trading at Rs 536, marking a notable uptick from its previous close of Rs 517.45. The rally continued as the stock quickly scaled to Rs 567.80 on the NSE. By 10 am, the shares were trading at Rs 561.65 apiece, reflecting an increase of 8.54%.
93% of large firms see AI as essential, but talent remains constraint: Report Multibagge…
Aditya Birla Group (ABG) firms crossed the combined market capitalisation mark of $ 100 billion, that is Rs 8,51,460.25 crore, on Friday, May 24. “The group’s market cap growth has beaten the benchmark indices Sensex and Nifty, year-to-date, as well as on a one-year, three-year, and five-year time frame,” a statement from the group said.
The statement further added that ABG’s market capitalisation accretion has been double that of the S&P even in US dollar terms across a time horizon of one year and three years.
UltraTech Cement, Grasim, Hindalco, Aditya Birla Capital, Aditya Birla Sun Life AMC, Vodafone Idea, Aditya Birla Fashion and Retail, TCNS Clothing, Aditya Birla Money, Century Textiles, Century Enka and Pilani Investment are a…