Tata Motors Shares fells Over 9% Following Q4 Results: Brokerages Offer Mixed Outlook

Tata Motors, one of India’s leading automobile manufacturers, saw a sharp decline in its stock price by over 9% on Monday, touching a low of Rs 948 on the Bombay Stock Exchange(BSE) during early trading hours. This plunge followed the company’s announcement of its fourth-quarter results on Friday, which failed to meet market expectations.

Several brokerages, including Goldman Sachs, Morgan Stanley, and Nomura, downgraded Tata Motors’ stock in response to the results. Goldman Sachs and Morgan Stanley expressed concerns about margin pressures at Jaguar Land Rover (JLR), a subsidiary of Tata Motors, due to rising costs and increased investments in electric vehicles (EVs).

Nomura, while downgrading Tata Motors to ‘neutral’ from ‘buy’, raised its target price to Rs 1,141, indicating a possible upside. However, Morgan Stanley, despite downgrading the stock to ‘equal weight’ from ‘overweight’, also raised its target price to Rs 1,100, citing the potential for strong EV uptake in the fiscal year 2025.

Brokerage firm Citi took a cautious stance, suspending its rating on Tata Motors due to the company’s weak forecast for fiscal year 2025. On the other hand, Kotak Equities retained an ‘add’ rating on the stock, projecting a positive outlook for fiscal years 2025-26, driven by JLR’s steady business and market share gains.

Tata Motors itself remains cautiously optimistic about the future, especially in the domestic market, despite anticipating a relatively weaker first half of the year. The company expects resilience in the premium luxury segment to offset any potential challenges.

As of 12:22 pm, Tata Motors shares were trading 8.30% lower at Rs 960 on the BSE. While the stock has shown significant gains in the past, including an 81% increase in 2023, investors are advised to consider the mixed opinions from experts and brokerages before making any investment decisions.