Tata Motors share price in focus ahead of Q2 results today: Here is what analysts expect

  • Stock Market Today: Tata Motors will report its financial performance for the quarter ending September (Q2 results) today. Analysts expect moderate growth for passenger vehicles and commercial vehicles segments.

Ujjval Jauhari
Published8 Nov 2024, 10:08 AM IST
Stock Market Today: Tata Motors share price in focus ahead of Q2 results today
Stock Market Today: Tata Motors share price in focus ahead of Q2 results today(Reuters)

Stock Market Today: Tata Motors share price has declined sharply by over 11% in the last one month amid a correction in the benchmark indices. Tata Motors share price was down around 1% in morning trades on Friday ahead of the earnings announcement by the auto major for the quarter ended September 2024 (Q2) today. As per analysts, Tata Motors is likely to post a mixed-bag performance for Q2.

Demand dynamics and industry scenario

The demand outlook for commercial vehicles remains subdued, while moderate growth in passenger vehicle demand also raises concerns. Discounts are likely to have increased and will be closely monitored in light of the soft demand during the period. Meanwhile, the channel inventory buildup ahead of festive season sales may bring some respite and favourable commodity prices bode well as does better model mix in passenger vehicles. However, not much is expected from Jaguar Land Rover sales amidst supply challenges. 

Here is what analysts expect from Tata Motors Q2 results:

 

Also Read | Stock market today: Five stocks to buy or sell on Friday — Nov 8

Q2 analysts expectations

Tata Motors India business performance was weak as both passenger vehicles and commercial vehicles volumes declined by 5% and 19% year-on-year (YoY), respectively, according to  Motilal Oswal Financial Services (MOFSL).

The commercial vehicles' earnings before interest and tax (EBIT) margin is likely to remain flat at 7.8% on a YoY basis. Passenger vehicles' EBIT margin, however, is likely to contract to -0.9% in Q2 from 1.7% in the same quarter last year due to rising discounts, said analysts at MOFSL.

Also Read | Zinka Logistics IPO: Price band set at ₹259-273 apiece; details here

Meanwhile, Jaguar Land Rover volumes are expected to see a 4% YoY decline due to supply challenges, as per MOFSL, which estimates an EBIT margin of 6.8% for Jaguar Land Rover (down 50bp sequentially), primarily due to lower volumes and rising discounts.

 

Also Read | Gold price declines after Fed rate cut; experts share key levels for MCX Gold

At the consolidated level, MOFSL expects a net operating income of 1,00,180 crore for Tata Motors, down 4.7% YoY. Earnings before interest tax depreciation and amortisation (EBITDA) may decline from 13,720 crore in the year-ago quarter to 13,260 crore in Q2FY25, however, EBITDA margins are likely to come in at 13.2% and still may remain comparable to 13.1% posted in the year-ago quarter, as per MOFSL. 

The brokerage expects net profit to be at 4,240 crore, up from around 3,780 crore in the year-ago quarter but lower than 5,560 crore posted in the previous quarter.

Elara Securities India Pvt Ltd, on the other hand, expects net profit for Tata Motors at 5,353 crore, only marginally lower than the June 2024 quarter but much higher than the September 2023 quarter. Analysts at Elara Securities said that they are building in a slight sequential deviation in average selling price (ASP) for most OEMs except Tata Motors in the passenger vehicles segment. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:8 Nov 2024, 10:08 AM IST
Business NewsMarketsStock MarketsTata Motors share price in focus ahead of Q2 results today: Here is what analysts expect

Most Active Stocks

Adani Power share price

446.85
03:57 PM | 25 NOV 2024
-13.9 (-3.02%)

Power Grid Corporation Of India share price

342.85
03:59 PM | 25 NOV 2024
5.85 (1.74%)

Tata Steel share price

143.60
03:58 PM | 25 NOV 2024
0.8 (0.56%)

State Bank Of India share price

844.75
03:53 PM | 25 NOV 2024
28.7 (3.52%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Wipro share price

582.75
03:54 PM | 25 NOV 2024
11.35 (1.99%)

Federal Bank share price

213.00
03:47 PM | 25 NOV 2024
3.75 (1.79%)

HCL Technologies share price

1,892.00
03:52 PM | 25 NOV 2024
-7.05 (-0.37%)

Tech Mahindra share price

1,733.95
03:46 PM | 25 NOV 2024
-13.75 (-0.79%)
More from 52 Week High

Adani Green Energy share price

967.65
03:59 PM | 25 NOV 2024
-84.75 (-8.05%)

DCM Shriram share price

1,182.00
03:29 PM | 25 NOV 2024
-69.65 (-5.56%)

Vijaya Diagnostic Centre share price

1,159.25
03:29 PM | 25 NOV 2024
-56.75 (-4.67%)

Adani Energy Solutions share price

624.85
03:57 PM | 25 NOV 2024
-24.55 (-3.78%)
More from Top Losers

Railtel Corporation Of India share price

397.05
03:47 PM | 25 NOV 2024
32.15 (8.81%)

Central Bank Of India share price

56.89
03:59 PM | 25 NOV 2024
4.56 (8.71%)

Emami share price

693.05
03:49 PM | 25 NOV 2024
54.1 (8.47%)

Sumitomo Chemical India share price

554.35
03:29 PM | 25 NOV 2024
40.4 (7.86%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    79,645.00-10.00
    Chennai
    79,651.00-10.00
    Delhi
    79,803.00-10.00
    Kolkata
    79,655.00-10.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.92/L0.00
    Chennai
    100.90/L-0.13
    Kolkata
    104.95/L0.00
    New Delhi
    94.77/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts