Tata Motors share price witnessed sharp selling in early morning session on Monday
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
Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, made the connection between the decline in the share price of Tata Motors and the Q4 results 2024 that were released on Friday of last week. He stated, “Tata Motors Q4 results 2024 were muted with limited margin expansion across businesses despite higher volumes.” The company is nonetheless cautiously optimistic about all of its businesses, with the premium luxury market being considered as resilient despite concerns about general developing demand and H1 being predicted to be weaker. The best may yet be ahead for all businesses, even though deleveraging progress is still ongoing. This is due to factors such as JLR’s declining orderbook, normalising mix, and higher customer acquisition costs, with normalising FCF generation; the flat growth outlook for the domestic CV space; and the moderating India PV outlook (though TTMT will outperform on new launches).
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’
According to the Motilal Oswal study, Tata Motors’ 4QFY24 result was operationally in line with our estimate, with EBITDA margin expanding 30bp QoQ to 14.2%. This reiterates the “neutral” perspective on the company’s share price outlook. TTMT undoubtedly performed exceptionally well in all of its major segments in FY24, but there are unmistakable obstacles along the way that could negatively impact the company’s performance going forward. We’ve cut our FY25 and FY26 EPS projections by 3% and 5%, respectively. The company is trading at 6.2x/5.3x EV/EBITDA and 18x/15.6x consolidated EPS for FY25E/FY26E. With our FY26E SOTP-based TP of ₹955, reiterate Neutral.
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.
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