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Tata Motors reported revenues for the December 2024 quarter, which missed out on price quotes; What should financiers do currently?
Tata Motors Share Price Today
Tata Motors Share Price: Shares of Tata Motors are down 9% at Rs 695.3 in very early profession on Monday after the business reported frustrating revenues for the December 2024 quarter, missing out on experts’ price quotes. As an outcome, worldwide broker agent company Jefferies reduced the supply to “underperform” from “buy” and considerably minimized its rate target to Rs 660, below Rs 930.
Jefferies highlighted numerous difficulties encountered by Tata Motors, consisting of weak need for its UK arm, Jaguar Land Rover (JLR), in China andEurope Additionally, the business is dealing with increasing client purchase expenses, greater service warranty expenditures, and a downturn in both business and traveler lorry need. The expanding competitors in the electrical lorry (EV) field likewise presents a threat to Tata Motors’ EV service.
The business’s Q3 earnings saw a 22% year-on-year decrease, going down to Rs 5,451 crore, mainly because of a sharp stagnation in the high-end Jaguar-Land Rover section, margin stress, and a careful need expectation for crucial markets like China.
Despite the earnings dip, Tata Motors reported a 3% year-on-year rise in profits, which increased to Rs 1.13 lakh crore. Consolidated EBITDA for the 3rd quarter stood at Rs 15,500 crore.
Check Latest Target Price For Tata Motors Shares
UBS has actually shared that Tata Motors’ expectation for the 4th quarter aspires provided the unpredictability bordering the fiscal years 2026 and 2027. The company highlighted that the healing in China is important for Jaguar Land Rover (JLR) to attain a 10% EBIT margin in the following fiscal year.
UBS has a “sell” rating on Tata Motors, with a price target of Rs 760.
Morgan Stanley has maintained an “equal-weight” ranking on the supply, establishing a rate target of Rs 853. It kept in mind that the business’s numbers were weak than anticipated and shown that JLR will certainly reassess its fiscal year 2026 support after the fourth-quarter outcomes.
On the various other hand, CLSA has actually kept its “outperform” rating on Tata Motors, with a price target of Rs 930. The brokerage believes the outlook for a strong fourth quarter remains intact but cautioned that weak demand in China and higher costs continue to pose near-term challenges.
CLSA has also revised its financial year 2026 volume estimates for JLR, lowering them by 5% to account for the weak demand in both the European Union and China.
At the current price, the stock is at a 52-week low, dipping below the previous low of Rs 707. It has now fallen 41% from its peak.
