Tata Motors’ share value rallied 9.6% on Friday to hit an intraday excessive of Rs 408 per share as traders reacted to the auto main’s January-March quarter outcomes. Tata Motors reported a consolidated internet lack of Rs 1,033 crore within the fourth quarter of the earlier fiscal 12 months, down from Rs 7,605 crore in the identical interval final 12 months. Analysts imagine Tata Motors’ outcomes have been a blended bag, and count on close to time period headwinds for the inventory. They have trimmed the goal costs, however have maintained their ‘Buy’ calls on Tata Motors inventory.
Results at a look
Revenue got here in at Rs 78,439 crore, down from Rs 88,627 crore within the year-ago interval.
Tata Motors reported EBITDA at Rs 8,800 crore.
JLR Revenue got here in at £4.8 billion down 27.1%, EBITDA at 12.6%
Tata industrial car Revenue was Rs 18.500 crore, up 29.3%, EBITDA at 5.9%
Tata passenger car income Rs 10.500 crore, up 62.0%, EBITDA at 6.9%
Tata Motors’ administration mentioned that demand stays robust regardless of geopolitical and inflation considerations. “We expect performance to improve through the year as the China COVID and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY 23 to get to near net auto debt-free by FY 2024,” they added. Strong demand for New Range Rover has helped order e-book to a brand new file at greater than 1,68,000 items.
Analysts trim targets, retain ‘Buy’ calls
Motilal Oswal: BUY
Target value: Rs 485 | Upside: 18.8%
Analysts at Motilal Oswal mentioned that the outcomes of Tata Motors have been a blended bag with Jaguar Land Rover lacking estimates whereas industrial and passenger car section beat their estimates. Tata Motors has minimize their FY23/FY24 consolidated EPS estimate by 12% every owing to rising covid-19 in China, value inflation, and rising Indian Rupee. “The stock trades at 13.4x FY24E consolidate P/E and 3.2x EV/EBITDA ratio. We maintain our Buy rating, with a TP of Rs 485 per share,” analysts mentioned.
ICICI Securities: BUY
Target value: Rs 677 | Upside: 65%
ICICI Securities has minimize its goal value from Rs 703 per share earlier to now Rs 677 apiece however retain the ‘Buy’ name. “Continued market share gains in the domestic PV business, CV upcycle and delivery on FCF generation (aim is to be auto debt-free by FY24E) coupled with aggression in building the EV portfolio resonate well with investor expectations,” ICICI Securities mentioned.
Yes Securities: BUY
Target value: Rs 520 | Upside: 27%
Analysts mentioned that a number of elements shocked positively corresponding to a discount in internet auto debt, nonetheless, these variables might average within the close to time period. Yes Securities believes the continued chip shortages compounded by UK-Russia rigidity and up to date China lockdowns may each gross sales and element provides for Tata Motors. “Tata Motors continue to remain our top pick, given its improving India franchise, early leadership in EVs in India, and JLR’s aggressive cost controls,” they added,