Tata Motors Share: Brokerage houses have released investment strategy on Tata Motors Share. This share of Tata Group has been the top performer of Nifty in the year 2023 and financial year 2024.
Tata Motors Share: The stock of Tata Group’s automobile company Tata Motors fell sharply on Monday (May 13). The stock fell by more than 9 percent in early trade. Tata Motors released its fourth quarter (Q4FY24) results on Friday. The company’s profit has increased three times in the January-March 2024 quarter. Income has also increased. The company has also declared a dividend of Rs 6 per share to the shareholders. After the results, brokerage houses have released investment strategy on Tata Motors Share. This share of Tata Group has been the top performer of Nifty in the year 2023 and financial year 2024.
Tata Motors: Share will go up to ₹1250
Jefferies has maintained Buy rating on Tata Motors. Also, the target price per share has been increased from Rs 1100 to Rs 1250. The brokerage says that 4Q EBITDA (working profit) has jumped 33% (YoY) to a new high. EBITDA in JLR and India business has jumped by 10-23%. The company’s net auto debt has declined by 45 percent (QoQ) to its lowest level in 6 years.
JP Morgan has given ‘overweight’ opinion on Tata Motors. Target has been increased from Rs 105 to Rs 1115. CLSA has increased the target on the stock from Rs 1133 to Rs 1181 per share with the rating of ‘Outperform’.
Morgan Stanley has downgraded the rating on Tata Motors from ‘Overweight’ to ‘Equalweight’. Also the target has been increased from Rs 1013 to Rs 1100 per share. The brokerage says that JLR Q4 EBIT margin was 9.2 percent. The guidance is to have EBIT margin of 8.4 percent in FY25 and 10 percent in FY26. A rapid EV turnaround could be a major upside risk in FY25.
Goldman Sachs has also reduced the rating on Tata Motors from Buy to ‘Neutral’. Also the target has been reduced from 1080 to 1040. Nomura has maintained buy advice on Tata Motors with a target of Rs 1057.
Tata Motors: How were the Q4 results?
Tata Motors’ consolidated income reached Rs 1.20 lakh crore in the fourth quarter of FY24. Conso profit increased from Rs 5408 crore to Rs 17407 crore (YoY). There was almost three times increase. Adjusted margin has increased from 12.1% to 14.2%. Revenue has increased from Rs 1.05 lakh crore to Rs 1.2 lakh crore. Adjusted EBITDA has increased from Rs 12,797 crore to Rs 16,996 crore. Tax credit has increased from Rs 621 crore to Rs 8159 crore (YoY).
The company said in its regulatory filing that the company’s board has declared a dividend of Rs 6 per equity share at the face value (300%) of Rs 2 for FY24.
Tata Motors Share History
If we look at the performance of Tata Motors stock, it has been the top performer of Nifty in the year 2023 and financial year 2024. The returns in the last one year are around 90 percent. Whereas in 6 months the stock has shown a rise of 50 percent. The stock has risen 10 percent so far in 2024.
On Monday (May 13), the stock fell more than 9 percent in early trade to the day’s low of Rs 948. The 52 week high of the stock on BSE is 1,065.60 and low is 504.75. The market cap of the company is more than Rs 3.20 lakh crore.
(Disclaimer: Investing in stock market is subject to market risks. Consult your advisor before taking any investment decision.)
