Tata Motors raced over 7 percent on January 27 after December quarter earnings beat estimates.
On January 25, the company reported a consolidated net profit of Rs 2,957.71 crore for the quarter ended December 2022, against a loss of Rs 1,516.14 crore in the same quarter last year.
The company posted profit after recording losses for seven consecutive quarters.
At 9:30 am, the stock was quoting at Rs 448.20 apiece on the National Stock Exchange, up by 7 percent. Trading volumes were 15.2 million shares.
Revenue from operations came in at Rs 88,488.59 crore, up 22.51 percent from Rs 72,229.29 crore in the same quarter last year, Tata Motors said in an exchange filing.
Here is what brokerages have to say about stock and the company post December quarter earnings:
Maintain 'Buy' with an unchanged Price Target of Rs 516.
Company is witnessing robust demand and is expected to deliver better operational efficiencies, aided by aggressive launches, market positioning, product differentiation, cost savings, and investments in research and development (R&D).
Expect operational performance to improve strongly in Q4FY23E and FY24E, as supply constraints are expected to ease gradually, while demand remains strong for both JLR and domestic operations.
Domestic CV and PV segments are expected to remain healthy because of new launches and operating leverage benefits.
Research firm has kept ‘Buy’ rating on the stock with a target at Rs 508 per share.
The Q3 margin improves across segments. JLR to benefit from rising chip supply and India CV strategy to reduce disc working well.
Company management says JLR Q4 volumes may be 85,000 & improve further in FY24.
Nomura maintains volume estimates for JLR for FY23-25 at 3.67 lakh/4.70 lakh/4.78 lakh and maintain EBITDA margin estimates for JLR for FY23-25 at 10.3 percent/14.1 percent/14 percent, reported CNBC-TV18.
Brokerage house has maintained ‘Buy’ rating on the stock and raised the target price to RS 565 per share.
The Q3 EBITDA grew to a 7-quarter high and was 25 percent above the estimates, while EBITDA/vehicle rose at JLR & India CVs led by better mix and pricing.
JLR maintained its Q4 guidance & expects chip constraints to ease gradually.
The company has strong order book with 74 percent of orders for new RR, RR-sport & defender.
Jefferies expect lower net loss in FY23 & raise FY24-25 EPS by 3-5 percent, reported CNBC-TV18.
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