Tata Motors shares: Should you buy, sell or hold? What brokerages say on Q3 results
Premium- Tata Motors Q3 revenue from operations dipped 4% YoY at ₹72,229 crore, however, rose 17% from previous quarter
Homegrown auto major Tata Motors reported a consolidated net loss of ₹1,516 crore for the third quarter as compared to ₹2,906 crore in the same quarter last year. The revenue from operations dipped to ₹72,229 crore from ₹75,653 crore in the year-ago quarter, though, rose 17% from the previous quarter.
The semiconductor shortage will likely ripple through 2022 and gradually improve as capacity within the supply base increases, Tata Motors said in its earnings statement.
Analysts at Prabhudas Lilladher maintain their positive stance on Tata Motors and reiterate as its top stock pick given “PV business is likely to gain further market share, led by new product launches and expanding portfolio, CV volumes will benefit from cyclical upturn, improving fleet utilization and freight rates and new refreshes in Land Rover and strong order book to benefit JLR and drive FCF generation." The brokerage has maintained its ‘Buy’ rating on the auto stock with target price of of ₹632 per share.
For the third quarter, JLR revenue came in £4.7 billion, up 22% on a sequential basis, while EBIT margin was at 1.4%. JLR expects profits to improve with a positive cash flow in the fourth quarter.
“India business will benefit from cyclical revival in the domestic CV industry and continued market-share gains for the PV business. Combination of rising scale at JLR along with cyclical uptick in domestic CVs and continued market-share gains for PV business will drive significant FCF generation. This would lead to Tata Motors turning net debt free by FY24E, in our view," as per Ambit Capital. It has reiterated Buy on Tata Motors shares with target price of ₹619 ( ₹551 earlier).
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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