Tata Motors share price tanks 9% after Q4 results 2024. Opportunity to buy?

Triggers for Tata Motors share worth fall

Connecting Tata Motors share worth drop with This autumn outcomes 2024 declared on Friday final week, Chirag Jain, Senior Analysis Analyst at Emkay World Monetary Providers mentioned, “Tata Motors This autumn outcomes 2024 had been muted with restricted margin enlargement throughout companies regardless of greater volumes. Firm stays cautiously optimistic throughout companies, with H1 anticipated to be weaker and the premium luxurious phase seen as resilient amid total rising demand considerations. Whereas deleveraging progress continues, we imagine the most effective could also be behind for all companies amid i) declining orderbook, normalizing combine, and better buyer acquisition prices at JLR, with FCF technology to normalize; ii) flattish development outlook for home CV area; and iii) moderating India PV outlook (although TTMT to outperform on new launches). FY25E/26E EPS is basically unchanged (we build-in consol. income/EBITDA CAGR of seven/8% over FY24-26E).”

Anticipating extra downsides in Tata Motors’ share, the Emkay World knowledgeable mentioned that Tata Motors’ share worth might drop additional to the tune of ₹950 apiece.

Motilal Oswal stays ‘impartial’ 

Re-iterating the ‘impartial’ view on Tata Motors share worth outlook, Motilal Oswal report mentioned, “Tata Motors 4QFY24 consequence was operationally consistent with our estimate as EBITDA margin expanded 30bp QoQ to 14.2%. Whereas there isn’t any doubt that TTMT has delivered a particularly sturdy efficiency throughout its key segments in FY24, there are clear headwinds forward which can be prone to harm its efficiency. We’ve lowered our EPS estimates by 3%/5% for FY25/FY26. The inventory trades at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA. Reiterate Impartial with our FY26E SOTP-based TP of ₹955.”

Tata Motors This autumn outcomes 2024

Tata Motors posted its March quarter monetary outcomes on Might 10, 2024. The auto big reported a major 222 p.c year-on-year enhance in its web revenue, reaching ₹17,407.18 crore. In the meantime, the corporate witnessed a notable 13.3 p.c surge in consolidated income, amounting to ₹1,19,986.31 crore.

Disclaimer: The views and suggestions offered on this evaluation are these of particular person analysts or broking corporations, and never Mint. We strongly advise buyers to seek the advice of with licensed specialists earlier than making any funding selections, as market situations can change quickly and particular person circumstances might range.

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Revealed: 13 Might 2024, 09:26 AM IST