- Date : 10/11/2022
- Read: 2 mins
Even though Tata Motors' loss has narrowed down to Rs. 944.6 crores, its shares dip by 5%.
It has not even been a day since Tata Motors announced its September quarter earnings, and its intraday price dropped by around 5.5% on November 10. For the quarter ending in September (FY23 Q2), Tata Motors reported a consolidated net loss amounting to Rs. 944.61 crores. Last year during the same period, the net loss stood at Rs. 4,441.57 crores.
Consolidated operations revenue grew 29.7% YoY to Rs. 79,611.3 crores this quarter. The amount was Rs. 61,378.82 last year during the same period. The EBIDTA is a corporate profit metric, and it grew by 130 bps (basis points) year on year in FY23 Q2 to 9.7%.
These companies have something to say, and we are here to listen:
CLSA has stuck to an "outperform" rating for Tata Motors, and its target is set at Rs. 491/share. Reports suggest that the JLR performs better than the Indian business in the second quarter. Its EBIDTA for quarter 2 is higher than what was estimated by experts.
We are witnessing improved performances in every business vertical of Tata Motors, including JLR, PVs, and CVs. There is robust demand, and it will provide better efficiencies in operations, which aggressive launches will help. Other helping and supporting factors will be research and development (R&D, cost-savings, product differentiation, and market positioning. The operational performance must strongly improve in H2FY23. We expect the supply constraints to ease gradually, and demand for JLR and domestic operations should be stable. We expect the domestic PV and CV segments to remain healthy on the back of operating leverages and new launch benefits. We expect the company to become positive in earnings driven by a strong all-around performance by FY2023E. Its PAT should be Rs. 7,068 crores due to high sales and improving margins. The target would be Rs 516, and we suggest you buy the stock.
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Tata Motors has been improving consistently and is a promising stock. You can buy the stock as many people are positive about its growth. Many companies have a "buy" rating for it and a higher target price.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.