The stock of Tata Motors climbed 5% in early trading on May 13, a day after the firm disclosed its March quarter profits.
Tata Motors Limited recorded a consolidated financial loss of Rs 1,032 crore for the quarter ending March 2022, compared to a consolidated net loss of Rs 7,605 crore the previous quarter.
The company’s consolidated revenue from operations fell 11.5 percent year over year to Rs 78,439 crore in the reporting quarter.
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Here is what brokerages have to say about stock and the company post March quarter earnings:
CLSA | Target Price : Rs 392-411
Brokerage firm CLSA has improved Tata Motors’ rating from sell to underperform, as well as its target price from Rs 392 to Rs 411.
JLR struggles to continue and disappoint owing to negative surprise on ASP, although its domestic business was solid.
According to CNBC-TV18, volume, mix, and greater realisation led to margin improvement in CV and PV, while robust demand should drive volume growth.
JPMorgan | Target Price: Rs 525
JPMorgan has maintained an overweight rating on the company and boosted its target price to Rs 525 per share.
The company’s deleveraging path is expected to continue with a robust FCF recovery and excellent projection for FY23.
According to CNBC-TV18, the business should expect net automotive debt to fall to Rs 11,800 crore by FY24.
Morgan Stanley | Target Price: Rs 560
Tata Motors is still rated overweight by the brokerage, with a target price of Rs 560 per share.
JLR is expected to have a poor first quarter, but FY23 outlook is a pleasant surprise. Unlike the downturn of 2018, the firm is now better positioned on JLR, as well as India PVs and CVs.
According to CNBC-TV18, JLR is facing headwinds, and Q1 EBIT margin and FCF may be negative.
At 9:16am, Tata Motors was quoting at Rs 391.25, up Rs 19.15, or 5.15 percent on the BSE.