Tata Motors share price witnessed sharp selling in the early morning session on Monday. Emkay Global said Tata Motors’ Q4 earnings were muted, with limited margin expansion across businesses, despite higher volumes. It has a target of Rs 950 for Tata Motors.
Stock market today: Following the release of the Q4 results 2024 on Friday of last week, there was a significant sell-off in the price of Tata Motors shares early on Monday morning. Within minutes of the opening bell on the stock market, the price of Tata Motors shares dropped to ₹1,005 on the NSE, marking an intraday loss of over 9 percent on Monday. The share price also struck an intraday low of ₹947.20 per share.
Triggers for Tata Motors Share Price Fall
Connecting Tata Motors share price drop with Q4 results 2024 declared on Friday last week, Chirag Jain, Senior Research Analyst at Emkay Global Financial Services said, “Tata Motors Q4 results 2024 were muted with limited margin expansion across businesses despite higher volumes. The company remains cautiously optimistic across businesses, with H1 expected to be weaker and the premium luxury segment seen as resilient amid overall emerging demand concerns. While deleveraging progress continues, we believe the best may be behind for all businesses amid i) declining order book, normalizing mix, and higher customer acquisition costs at JLR, with FCF generation to normalize; ii) flattish growth outlook for domestic CV space; and iii) moderating India PV outlook (though TTMT to outperform on new launches). FY25E/26E EPS is largely unchanged (we build-in console. revenue/EBITDA CAGR of 7/8% over FY24-26E).”
Expecting more downsides in Tata Motors’ share, the Emkay Global expert said that Tata Motors’ share price may drop further to the tune of ₹950 apiece.
Motilal Oswal Remains ‘Neutral’
Re-iterating the ‘neutral’ view on Tata Motors share price outlook, Motilal Oswal report said, “Tata Motors 4QFY24 result was operationally in line with our estimate as EBITDA margin expanded 30bp QoQ to 14.2%. While there is no doubt that TTMT has delivered an extremely robust performance across its key segments in FY24, there are clear headwinds ahead that are likely to hurt its performance. We have lowered our EPS estimates by 3%/5% for FY25/FY26. The stock trades at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA. Reiterate Neutral with our FY26E SOTP-based TP of ₹955.”
Tata Motors Q4 Results 2024
Tata Motors posted its March quarter financial results on May 10, 2024. The auto giant reported a significant 222 percent year-on-year increase in its net profit, reaching ₹17,407.18 crore. Meanwhile, the company witnessed a notable 13.3 percent surge in consolidated revenue, amounting to ₹1,19,986.31 crore.
