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Business News/ Markets / Stock Markets/  Tata Motors share price tanks 9% after Q4 results 2024. Opportunity to buy?

Tata Motors share price tanks 9% after Q4 results 2024. Opportunity to buy?

Tata Motors share price witnessed sharp selling in early morning session on Monday

Tata Motors share price: In Q4 results 2024, the auto giant reported a significant 222% YoY increase in its net profit. (Photo: Reuters)Premium
Tata Motors share price: In Q4 results 2024, the auto giant reported a significant 222% YoY increase in its net profit. (Photo: Reuters)

Stock market today: After announcement of Q4 results 2024 on Friday last week, Tata Motors share price witnessed strong selling in early morning session on Monday. Tata Motors share price today opened downside at 1,005 apiece on NSE and touched an intraday low of 947.20 per share within a few minutes of the stock market's opening bell, logging an intraday loss of more than 9 percent on Monday.

Triggers for Tata Motors share price fall

Connecting Tata Motors share price drop with Q4 results 2024 declared on Friday last week, Chirag Jain, Senior Research Analyst at Emkay Global Financial Services said, “Tata Motors Q4 results 2024 were muted with limited margin expansion across businesses despite higher volumes. Company remains cautiously optimistic across businesses, with H1 expected to be weaker and the premium luxury segment seen as resilient amid overall emerging demand concerns. While deleveraging progress continues, we believe the best may be behind for all businesses amid i) declining orderbook, normalizing mix, and higher customer acquisition costs at JLR, with FCF generation to normalize; ii) flattish growth outlook for domestic CV space; and iii) moderating India PV outlook (though TTMT to outperform on new launches). FY25E/26E EPS is largely unchanged (we build-in consol. revenue/EBITDA CAGR of 7/8% over FY24-26E)."

Expecting more downsides in Tata Motors' share, the Emkay Global expert said that Tata Motors' share price may drop further to the tune of 950 apiece.

Motilal Oswal remains ‘neutral’ 

Re-iterating the ‘neutral’ view on Tata Motors share price outlook, Motilal Oswal report said, “Tata Motors 4QFY24 result was operationally in line with our estimate as EBITDA margin expanded 30bp QoQ to 14.2%. While there is no doubt that TTMT has delivered an extremely robust performance across its key segments in FY24, there are clear headwinds ahead that are likely to hurt its performance. We have lowered our EPS estimates by 3%/5% for FY25/FY26. The stock trades at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA. Reiterate Neutral with our FY26E SOTP-based TP of 955."

Tata Motors Q4 results 2024

Tata Motors posted its March quarter financial results on May 10, 2024. The auto giant reported a significant 222 percent year-on-year increase in its net profit, reaching 17,407.18 crore. Meanwhile, the company witnessed a notable 13.3 percent surge in consolidated revenue, amounting to 1,19,986.31 crore.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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Published: 13 May 2024, 09:26 AM IST
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