Shares of Tata Motors slumped 9 per cent in early commerce on Thursday on recording a 22 per cent decline in consolidated internet revenue to ₹5,578 crore within the third quarter ended December 2024, on account of a dip in income from its passenger and industrial autos divisions.
Brokerages have taken a bearish stance on the inventory as the expansion outlook throughout segments seems weak. World brokerage Jefferies has downgraded the inventory with an underperform ranking, slicing the goal worth closely to ₹660 per share.
Morgan Stanley, sustaining equal weight name, has lowered the goal worth from ₹920 to ₹853.
One other international brokerage Goldman Sachs has maintained a impartial name at a goal worth of ₹800.
Home brokerage Motilal Oswal has reiterated impartial name on the inventory at a goal worth of ₹755. The brokerage expects margin strain to persist at Jaguar Land Rover (JLR) over FY24-27E, given weak demand in key areas, rising value strain because it invests in demand technology, and EV ramp-up, which is more likely to be margin-dilutive. “Even in India, each CV and PV companies are seeing a moderation in demand,” it added.
Nuvama Institutional Equities has retained cut back ranking at a slashed goal worth of ₹720 from ₹750 earlier. The brokerage cited that the corporate posted a 15 per cent y-o-y dip in Q3FY25, lagging estimates on account of a realisation/ margin miss in JLR and the India industrial car (CV) division.
Nuvama additional expects the home CV division to show in a muted efficiency owing to reasonable highway development expenditure and a excessive base. “This weak point in demand outlook also needs to enhance prices led by higher advertising and marketing and gross sales promotion spends in international and home markets,” it added.
HDFC Securities Analysis emphasised that the JLR enterprise continues to be impacted by a difficult international macro setting (particularly in China), continued increased discounting, elevated variable advertising and marketing bills (VME), elevated guarantee prices, increased client acceptance danger for the upcoming revamped Jaguar portfolio, and a slowdown in EV gross sales globally, which might result in mistimed EV launches for the corporate. On the CV phase, it’s optimistic that progress will being pushed by the anticipated pick-up in infrastructure and development actions in FY26.
For the PV division, the analysts acknowledged that an ageing portfolio and up to date launches by competitors might result in the corporate’s underperformance. The brokerage has maintained cut back ranking at a goal worth of ₹718.
