Tata Motors, the automobile giant of Tata Group, witnessed a volatile trend ahead of its Q3 results. On January 29, the stock extended its losses to hit a new 52-week low of Rs 707.55 apiece, but recovered losses to end higher by 2.2% on BSE. In the third quarter, Tata Motors is expected to report revenue growth sequentially on both standalone and consolidated basis.
Tata Motors Share Price:
Ahead of Q3 results, Tata Motors share price stood at Rs 728.45 apiece on BSE, with market cap of Rs 2,68,151.54 crore. During the trading hours, the stock had a new 52-week low of Rs 707.55 apiece. Its price-to-equity ratio is at 28.63x, while return on equity is at 30.57%.
Tata Motors Q3 Results Preview:
A board meeting of directors of Tata Motors is scheduled to be held on Wednesday, January 29, 2025, inter alia, to consider and approve the Audited Standalone Financial Results and Unaudited Consolidated Financial Results (with Limited Review) for the third quarter and nine months ended December 31, 2024.
Emkay Global in its preview note said, "Revenue growth QoQ on account of higher volumes in both, standalone and JLR; we expect strong mix at JLR to drive higher margins for consolidated operations as well."
The brokerage predicts 19.7% QoQ and 9.8% YoY growth in revenue during Q3FY25 for Tata Motors. While EBITDA is expected to rise by 49.8% YoY and 14% QoQ. PAT is seen to record strong quarter with estimates of 195.6% QoQ and 20.1% YoY growth.
The sales figures of Tata Motors and its luxury car JLR is already out for Q3FY25.
In Q3FY25, the company recorded sales of 2,35,599 vehicles including both domestic and international markets, which was marginally up from sales of 2,34,981 units during Q3 FY 2023-24. The sales of commercial vehicles were down 1% YoY to 95,770 units, while passenger car sales inched up by 1% YoY to 1,39,829 units in Q3FY25.
Also, JLR reported that its wholesale volumes stood at 104,427 units in the third quarter of FY25 (excluding the Chery Jaguar Land Rover China JV) were up 3% compared to the same quarter a year ago and up 20% compared to the prior quarter ended 30 September 2024. Compared to the prior year, wholesale volumes were higher in North America (+44%) and Europe (+6%), and lower in China (-38%), the UK (-17%) and Overseas (1%). Wholesale volumes for the financial year to date were 289,485, down 1% compared to the prior year.
Any announcement related to Tata Motors demerger of business in the ratio of 1:1 will also be keenly watched on January 29. The company is planning the demerger of Tata Motors into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity.
The demerger ratio is 1:1, which means that shareholders of Tata Motors will have identical shares in both the listed companies. The demerger is expected to complete by March 2025, as per reports.
BUY Tata Motors Stock?
As per Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. EPS is expected to reduce by 28.3% in FY25. The 1-year average target price in Tata Motors is of Rs 949.73 apiece, hinting at over 30% potential upside ahead.
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