Tata Motors stock rose over 8 per cent in early trade today after the auto major reported its Q4 earnings. The large cap stock rose to an intraday high of Rs 403, gaining 8.30 per cent on BSE. The share opened 3.82 percent higher at Rs 386.30 today.
Tata Motors shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 21.41 per cent in one year but lost 18 per cent since the beginning of this year. Market cap of the firm rose to Rs 1.31 lakh crore on BSE.
Tata Motors stock has gained after five days of consecutive fall. Total 2.27 lakh shares changed hands amounting to a turnover of Rs 8.96 crore.
The share hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 268.50 on August 24, 2021. The automaker reported narrowing of net loss to Rs 1,032.84 crore for the quarter ended 31 March, 2022 against net loss of Rs 7,605.40 crore a year earlier.
Sequentially, the automaker’s loss narrowed from Rs 1,516.14 crore in the December quarter (Q3FY22). However, consolidated total revenue from operations fell nearly 11.4 per cent to Rs 78,439.06 crore versus Rs 88,627.90 crore from a year ago.
The company’s earnings before interest, taxes, depreciation, and amortisation or EBIDTA margin in Q4 came in at 11.2 per cent, down 320 basis points. EBIT margin at 3.2 per cent fell 410 basis points.
Tata Motors Q4 results: Net loss narrows to Rs 1,033 cr
Here’s a look at how brokerages expect the stock to move after the firm’s Q4 earnings.
Brokerage Motilal Oswal said the Q4 earnings of the auto major were a mixed bag. JLR mix deteriorated due to a runout of the old Range Rover, whereas the recovery in India businesses was strong.
The brokerage has maintained its buy rating on the stock post Q4 earnings.
“Tata Motors should witness a gradual recovery as supply-side issues ease and commodity headwinds stabilize (for the India business). It will benefit from: a) a macro recovery, b) company-specific volume and margin drivers, and c) a sharp improvement in FCF and leverage in both JLR as well as the India business. The stock trades at 13.4x FY24E consolidate P/E and 3.2x EV/EBITDA ratio. We maintain our Buy rating, with a target price of Rs 485 per share (Mar’24E-based SoTP), ” the brokerage said.
CLSA has upgraded the stock from sell to underperform. It has also raised its target price to Rs 411 from Rs 392. The brokerage said performance of the domestic business is strong while the company will continue to see challenges from the JLR front. Strong demand should lead to volume growth, the brokerage added.
Morgan Stanley said JLR is set to have a weak Q1 but guidance for FY23 is a positive surprise. unlike in 2018 downcycle, the firm is now better placed on JLR, as well as India PVs & CVs. It maintained an overweight stance on the stock with a target price of Rs 560.
