Tata Motors Faces Steep Decline as Q4 Results Disappoint; Analysts Reassess Target Prices Across Tata Group
Tata Motors witnessed a significant dip of over 9.22% to Rs 950.30 on Monday, resulting in a total market capitalization exceeding 3.15 lakh crore.
The trading session on Monday saw Tata Motors Ltd experiencing a notable decline following the release of its mixed performance in the March 2024 quarter. The reaction was swift as the auto giant fell short of Q4 estimates, coupled with a subdued outlook for Jaguar Land Rover (JLR).
Despite Tata Group's automaker reporting a remarkable 222% year-on-year (YoY) surge in consolidated net profit, reaching Rs 17,407 crore, propelled by enhanced operating leverage, favorable commodity prices, and robust volume growth across segments, its revenue from operations climbed by 13% to Rs 1.2 lakh crore.
While Tata Motors' financial figures may seem impressive at first glance, its Q4 results failed to meet Street estimates in revenue and EBITDA. Market analysts suggest that the peak performance might be in the rearview mirror for all Tata Motors businesses, anticipating a more modest growth in FY25 due to a high base. Despite cautious optimism, the first half of the year is expected to be subdued amid lingering demand concerns.