Tata Motors shares to remain in focus after Q2 loss narrows to Rs 944.6 crore

Tata Motors share price will remain in focus on November 10 - a day after company reported its September quarter earnings.

Tata Motors Limited on November 9 reported a consolidated net loss of Rs 944.61 crore for the quarter ended September (Q2FY23). It had posted a net loss of Rs. 4,441.57 crore a year back (Q2FY22).

The consolidated revenue from operations rose 29.7 percent on a year-on-year basis to Rs 79,611.3 crore for the reported quarter as against Rs 61,378.82 crore from the year-ago period.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) margin, a metric of corporate profit, improved by 130 basis points (bps) YoY in Q2FY23 to 9.7 percent.

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Here is what brokerages have to say about stock and the company post June quarter earnings

CLSA

We have kept outperform rating on Tata Motors and raised the price target to Rs 491 per share.

The JLR performs better than India business in Q2, while JLR 2QFY23 EBITDA higher than estimates, reported CNBC-TV18.

Sharekhan

Tata Motors is witnessing improvement in all business verticals – JLR, CVs, and PVs. The 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).

We expect operational performance to improve strongly in H2FY23, as supply constraints are expected to ease gradually, while demand continues to remain 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.

Driven by an all-round strong performance, we expect company to become earnings positive in FY2023E with PAT of Rs 7,068 crore, driven by robust sales growth and better margins.

We reiterate our buy rating on the stock with an unchanged price target (PT) of Rs 516.