Tata Motors Witnesses Sharp Drop in Shares Despite Solid Q4 Performance
Tata Motors: witnessed a sharp 9% decline in its shares post its Q4 FY24 results, despite a strong financial performance. Opening significantly lower at ₹947.20 on Monday compared to the previous Friday's close at ₹1,046.85, the stock's market capitalization plummeted to over ₹3.15 lakh crore. While Q4 showcased robust performance across key segments, concerns about future demand led to this unexpected downturn. Analysts have responded with revised target prices. Motilal Oswal Financial Services downgraded its rating to "neutral," setting a target price of ₹970, citing anticipated cost pressures and a subdued India business outlook. However, JPMorgan upgraded its rating to "overweight," raising the target price to ₹1,115, reflecting confidence in Tata Motors' long-term prospects. Jefferies also maintains a "buy" call with a revised target price of ₹1,250, impressed by the company's free cash flow generation. The divergent views emphasize the complexity of analyzing Tata Motors, urging investors to carefully consider these factors and analyst recommendations before making investment decisions.