Tata Motors share price opened in the green on July 27, a day after the company declared its Q1 results.
The auto major on July 26 posted a consolidated net loss of Rs 4,450.92 crore for Q1 FY22 against a net loss of Rs 8,437.99 crore in the corresponding quarter of the previous financial year.
Consolidated revenue for the quarter more than doubled to Rs 66,406.45 crore from Rs 31,983.06 crore in the year-ago period. The CNBC-TV18 poll of analysts had pegged revenue at Rs 65,451 crore.
Net loss of the JLR segment stood at 110 million pounds which was above the CNBC-TV18 poll's estimate of a loss of 56 million pounds.
India operations of Tata Motors showed significant improvement as compared to Q1 FY21, however the second COVID wave in India along with the supply issues slowed down the growth momentum as compared to Q4 FY21, the company said.
Retail sales of JLR in the first quarter were 1,24,537 vehicles, up 68.1 percent YoY as sales continued to recover from the impact of the pandemic, the company said in its BSE filing.
The stock was trading at Rs 294.60, up Rs 1.50, or 0.51 percent. It has touched an intraday high of Rs 295.75 and an intraday low of Rs 291.95.
Here is what brokerages have to say about the stock and the company after Q1 earnings:
Jefferies | Rating: Buy | Target: Rs 435
The brokerage firm has cut the FY22 EPS estimate by 34 percent and broadly maintains the FY23 EPS estimate. Q1 EBITDA fell 59 percent QoQ, pulled down by chip shortages at JLR and COVID in India. India business should improve sequentially as demand is picking up, it said.
JLR expects chip shortages to worsen in Q2 before easing in H2. It's seeing good demand though and has the highest-ever order book, it said.
UBS | Rating: Neutral | Target: Cut to Rs 320 from Rs 350
India business was in line but the JLR margin was weak. It expects a strong truck cycle recovery over FY22-23. The brokerage firm remains positive on India PV demand and market share gains for Tata Motors. The neutral rating is on the back of lack of strong EV pipeline at JLR and rising competitive intensity.
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Motilal Oswal | Rating: Buy | Target: Rs 400
Tata Motors faced a double whammy of closure in the India business and a chip shortage in the JLR business in Q1 FY22. The operating performance beat was driven by a favourable mix in both businesses. Looking beyond the near-term issues, we expect good traction in the JLR and India businesses.
We cut our FY22E EPS estimate by 77 percent, accounting for sales loss due to the ongoing semiconductor shortage, while we maintain our FY23E EPS estimate and maintain buy, with a target of Rs 400.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.