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Tata Motors reported earnings for the December 2024 quarter, which missed estimates; What should investors do now?
Tata Motors Share Price Today
Tata Motors Share Price: Shares of Tata Motors are down 9% at Rs 695.3 in early trade on Monday after the company reported disappointing earnings for the December 2024 quarter, missing analysts’ estimates. As a result, global brokerage firm Jefferies downgraded the stock to “underperform” from “buy” and significantly reduced its price target to Rs 660, down from Rs 930.
Jefferies highlighted several challenges faced by Tata Motors, including weak demand for its UK arm, Jaguar Land Rover (JLR), in China and Europe. Additionally, the company is facing rising customer acquisition costs, higher warranty expenses, and a slowdown in both commercial and passenger vehicle demand. The growing competition in the electric vehicle (EV) sector also poses a risk to Tata Motors’ EV business.
The company’s Q3 profit saw a 22% year-on-year decline, dropping to Rs 5,451 crore, largely due to a sharp slowdown in the luxury Jaguar-Land Rover segment, margin pressure, and a cautious demand outlook for key markets like China.
Despite the profit dip, Tata Motors reported a 3% year-on-year increase in revenue, which rose to Rs 1.13 lakh crore. Consolidated EBITDA for the third quarter stood at Rs 15,500 crore.
Check Latest Target Price For Tata Motors Shares
UBS has expressed that Tata Motors’ outlook for the fourth quarter is ambitious given the uncertainty surrounding the financial years 2026 and 2027. The firm highlighted that the recovery in China is crucial for Jaguar Land Rover (JLR) to achieve a 10% EBIT margin in the next financial year.
UBS has a “sell” rating on Tata Motors, with a price target of Rs 760.
Morgan Stanley has maintained an “equal-weight” rating on the stock, setting a price target of Rs 853. It noted that the company’s numbers were weaker than expected and indicated that JLR will reassess its financial year 2026 guidance after the fourth-quarter results.
On the other hand, CLSA has retained its “outperform” rating on Tata Motors, with a price target of Rs 930. The brokerage believes the outlook for a strong fourth quarter remains intact but cautioned that weak demand in China and higher costs continue to pose near-term challenges.
CLSA has also revised its financial year 2026 volume estimates for JLR, lowering them by 5% to account for the weak demand in both the European Union and China.
At the current price, the stock is at a 52-week low, dipping below the previous low of Rs 707. It has now fallen 41% from its peak.