The shares of the leading automaker have fallen 5 percent after the company’s net profit and revenue decreased by 67 percent and 10 percent QoQ, respectively in Q1FY25.
Tata Motors Ltd has a market capitalization of Rs 3.67 lakh crore, the shares were trading in red at Rs 1,105.85 per share, decreasing around 3.39 percent as compared to the previous closing price of Rs 1,144.60 apiece.
Reason for fall:-
The share of the company has seen positive movement after Tata Motors Ltd’s revenue plummeted by 10 percent on a quarter-on-quarter basis from Rs. 119,986 crores in Q4FY24 to Rs. 108,048 crores in Q1FY25. Further, revenue magnified by 6 percent yearly from Rs 102,236 crores in Q1FY24 to Rs. 108,048 crores in Q1FY25.
Tata Motors Ltd’s net profit decreased by 67 percent on a quarter-on-quarter basis from Rs. 17,529 crores in Q4FY24 to Rs 5,692 in Q1FY25. Further, on a year-on-year basis its net profits increased 72 percent from Rs. 3,301 crores in Q1FY24 to Rs. 5,692 crores in Q1FY25.
Brokerage coverage:-
As per the global brokerage firm, UBS has maintained a sell call on the stock with a target price of Rs 825, noting that while the commercial vehicles (CV) business was strong, passenger vehicles (PV) were weak, and JLR mixed.
Also read
Rational:-
Moreover, the brokerage anticipates JLR margins to expand modestly in FY24-26, owing to growing cost pressures as it invests in demand creation, normalizing mix, and EV ramp-up, all of which are anticipated to dilute profits.
Furthermore, JLR’s order book fell from 133,000 units in March 24 to 104,000 units on June 24. This order book exhaustion, along with a high base, should result in single-digit growth in fiscal year 25E.
Company profile:-
Tata Motors Limited has a diversified portfolio, including automobiles, SUVs, trucks, buses, and defense vehicles. The company’s sectors include automotive and other activities. The automobile segment has four reportable sub-segments: Tata Commercial Vehicles offers small commercial vehicles (SCV), pickup trucks, medium and large commercial vehicles, and more.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
