On January 30, Tata Motors’ stock fell a lot—about 6.8%—after it shared disappointing financial results for the third quarter (Q3). The company’s profit dropped 22% compared to last year, totaling Rs 5,451 crore, which was much lower than what many experts expected. Although their revenue increased by 3% to Rs 1.13 lakh crore, the news still worried investors.
Tata Motors also announced they have lowered their revenue goal for Jaguar-Land Rover (JLR) to GBP 29 billion for the financial year 2025, down from GBP 30 billion. They now expect a return on capital employed (ROCE) of 20%, down from 22%. The company aims for an EBIT margin of more than 8.5% and a free cash flow target of GBP 1.3 billion.
After these results, different financial experts (brokerages) gave varying opinions on the stock:
– Jefferies: They think investors should ‘Underperform’ and lowered their target price from Rs 930 to Rs 660. They have concerns about weak demand for JLR in China and Europe, rising costs to attract customers, and higher costs related to warranties.
– Nuvama: They suggest ‘Reduce’ and have changed their target price from Rs 750 to Rs 720. They believe that Tata Motors’ EBITDA fell short of what was expected, and they predict slow growth for JLR.
– Kotak Equities: They say ‘Add’ to your portfolio, with a target of Rs 825. They noted that Tata Motors’ EBITDA was below expectations but think demand will get better soon.
– Elara Capital: They recommend a ‘Buy’ with a target price of Rs 909. They believe JLR will grow in China and that Tata Motors is taking steps to improve its costs and margins.
(Note: The views shared by these experts are their own and do not reflect the views of Thellv.news)
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