Tata Motors shares fell 9.06 per cent to a new low of Rs 684.25 in day trading on Thursday. The company’s stock declined after disappointing results in the third quarter of FY 2025. The stock finally fell 7.37 percent to close at 697 and was among the most falling stocks on BSE. The BSE Sensex climbed 0.30 per cent to close at 76,759.81.
In the third quarter of FY 2025, the company’s net profit declined by Rs 22.4 per cent to Rs 5,451 crore on an annual basis, which was Rs 7,025 crore in the third quarter of FY 2024. Revenue increased by 2.7 per cent to Rs 1,13,575 crore on an annual basis, which was Rs 1,10,577 crore in the previous year.
Nuwama In the third quarter of FY 2025, Ebita was expected to fall by 15 percent annually. But Ebita was less than its estimate due to a weak performance in JLR and Indian Commercial Vehicle (CV) section. The management has reduced its financial year 2025 JLR revenue estimates by 3 percent, keeping in mind that Nuwama reduced its FY 2025 Ebit Estimates by 4 per cent.
Analysts are now estimated to increase a sluggish revenue and accusation of 2 per cent from FY 2025 to FY 2027. In addition, only 1 percent of CAGR is expected in India KCV section, as road construction expenses are showing softening. Therefore, Nuwama has reduced its price target from Rs 750 to Rs 720 for this stock and retained the ‘reduce’ rating.
Increded equities Declared a 24 per cent decline on an annual basis in the taxation (PAT) after the tax. But the actual figures were weaker by 4 per cent than its estimate. Increded has retained a ‘reduce’ rating on this stock with a price target of Rs 746.
MK analysts The third quarter performance has been weaker than the estimate. Performance was affected in the quarter due to a decline in average sales (ASP) in JLR as well as estimated margin increase. The FY 2025 revenue estimates for JLR have been reduced to 29 billion pounds (from 30 billion pounds).
Analysts of Motilal Oswal The improvement in JLR’s Ebita Margin was largely recorded due to a decrease in depreciation. He has also warned of potential pressure on margin due to weak demand and cost increase in major areas. Global brokers have also amended their estimates.
Morgan Stanley The price target for this stock has been reduced from Rs 920 to Rs 853 while the ‘equal weight’ rating has retained. Jeffers has reduced the shared rating ‘Underperforce’ from ‘Buy Buy’. Goldman Sachs has maintained a neutral rating with a price target of Rs 800.