Tata Motors
Tata Motors share price fell in the early trade on July 28, a day after the company reported losses in the quarter ended June 2022.
Tata Motors on July 27 said its consolidated net loss for the quarter ended June 2022 came in at Rs 5,006.60 crore, widening from a loss of Rs 4,450.92 crore in the same quarter last year.
Total revenue from operations, however, stood at Rs 71,934.66 crore, up 8.32 percent from Rs 66,406.45 crore in the year-ago quarter.
The EBITDA margin was at 7.4 percent for the quarter, down 90 basis points year-on-year (YoY), while the Ebit margin increased 60 basis points to -0.7 percent. One basis point is one-hundredth of a percentage point.
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Here is what brokerages have to say about stock and the company post June quarter earnings
Nomura
Foreign broking house Nomura has maintained buy rating on the stock with a target at Rs 520 per share.
The Q1 was a miss, while deleveraging is a key driver for stock. The M&HCV recovery is on track, and PVs to ramp up further.
JLR to benefit from improved chip supply, reported CNBC-TV18.
Jefferies
Brokerage firm Jefferies has kept buy call on the stock with a target at Rs 540 per share.
It has cut FY23 EPS estimate by 24 percent. The Q1 EBITDA fell 40% YoY & 51 percent below estimate, led by weak JLR results.
India business performed well with CV EBITDA ahead of the estimate.
The company expects JLR performance to improve significantly starting Q2, reported CNBC-TV18.
CLSA
Research firm CLSA has retained outperform rating on the stock and raised the target price to Rs 494 from Rs 453 per share.
The company reported a very weak quarter largely led by significant deterioration in JLR.
We take comfort from JLR’s growing order backlog and strong domestic business, said CLSA.
Motilal Oswal
Tata Motors should witness a gradual recovery as supply-side issues ease (for JLR) 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.
We maintain our Buy rating, with a target price of ~ Rs 520/share (Jun’24E based SoTP).
At 09:16 hrs Tata Motors was quoting at Rs 436.40, down Rs 7.55, or 1.70 percent on the BSE.
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