What Happened: The auto giant‘s net profits for the June quarter came in at ₹3,089.7 crore as against a loss of ₹4,987.01 crore it booked in the same quarter last year. The number beat street estimates of around ₹2,600 crore.
The company's revenue from operations for the April-June period stood at ₹1.2 lakh crore, up 42.1% from the year-ago period and in line with analyst estimates of around 1.1 lakh crore.
Analyst Reactions: Morgan Stanley maintained its ‘overweight’ rating on the stock with a price target of ₹711. The research firm that the company’s earnings beat was driven by the Jaguar Land Rover business. The firm expects the JLR business to drive deleveraging in the current financial year. The analysts said that EV ramp-up would be a key theme in 2024.
CLSA also maintained its ‘buy’ call on the stock with a target price of ₹780. The brokerage said that the company posted great results for the quarter, with JLR and Commercial Vehicle segments both beating margin estimates. The global brokerage firm expects further margin expansion as production volumes rise and commodity prices fall.
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ICICI Securities maintained its ‘add’ rating for the stock raising the price target to ₹690 from ₹620. The brokerage firm noted that the company reported strong numbers in a seasonally weak quarter but the Passenger Vehicle segment was a miss.
Price Action: Tata Motors’ share price was up % to trade at ₹6 as the markets opened on Wednesday.
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