Home >Markets >Stock Markets >Should you buy, sell or hold Tata Motors shares post Q1 results? What brokerages say

Homegrown auto major Tata Motors' consolidated net loss narrowed at 4,450 crore in Q1FY22 as sales improved when compared to 8,444 crore in the same quarter last year amid massive disruptions due to the covid pandemic. Shares of Tata Motors slipped from highs in Tuesday's afternoon deals after gaining in early trade on the BSE.

The company's consolidated revenue from operations during the quarter review rose at 66,406 crore as against 31,983 crore in the year-ago quarter. Tata Motors' British arm Jaguar Land Rover (JLR) saw its sales impacted by semiconductor shortages with wholesales, or factory dispatches, of JLR vehicles were 30,000 units less than its targets during the June quarter .

Analysts at Motilal Oswal in a note said that Tata Motors faced the double whammy of closure in the India business and a chip shortage in the JLR business in 1QFY22. The operating performance beat was driven by a favorable mix in both businesses. Looking beyond the near-term issues, it expects good traction in the JLR and India businesses.

With softening of headwinds, the automakerwould see the triple benefit of macro recovery, company-specific volume/margin drivers, and sharp improvement in FCF and leverage in the JLR and India businesses, Motilal Oswal added. It has maintained its 'Buy' rating on the stock with target price of 400 per share.

ICICI Securities said that Tata Motors' Q1FY22 operational performance was in line with consensus estimates with consolidated EBITDA margin at 7.9%. It expects the domestic CV market leader to benefit from the segment’s multi-year growth story.

The brokerage has a Buy stance on the auto stock with 513 target price. On domestic PV front, Tata Motors has reached double-digit ICE market share (after 9 years) and is also leading the electrification charge in India via an ecosystem (collaborative) approach: a) products (10 new launches by CY25), b) charging infra with Tata Power, c) battery localisation, ICICI Securities said in a note.

Another brokerage firm PhillipCapital has also maintained Buy rating on the stock with target price of 370 per share. ''Though near-term outlook is marred by shortage of semiconductors, we expect the company’s strong performance momentum to continue in the medium term,'' it said.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout