Tata Motors, the automobile giant of Tata Group, could not join the cheer of Budget 2025 and tumbled by 2% on BSE. The latest bearish trend comes after Tata Motors reported flat commercial vehicle sales and double-digit decline in passenger vehicles during January 2025 month. With that, Tata Motors' share price is around Rs 17 away from hitting yet another new 52-week low.
Tata Motors Share Price:
At the time of writing, Tata Motors' share price stood at Rs 705.75 apiece, down by 1.43% on BSE with a market cap of Rs 2,59,684.96 crore. The stock was near its intraday low of Rs 701.40 apiece, which was around Rs 17.5 away from touching its 52-week low of Rs 684.25 apiece.
Tata Motors January 2025 Sales:
In January 2025, the company posted sales of 80,304 vehicles, compared to 86,125 units in January 2024. Further, during the month, commercial vehicle sales were muted to 31,988 units, while the sales of passenger vehicles dropped by 11% to 48,316 units compared to the same month a year ago.
Tata Motors Q3 Results:
During Q3FY25, the company posted a 22.5% decline in net profit to Rs 5,451 crore compared to the net profit of Rs 7,025 crore reported a year ago same quarter. Also, EBITDA declined by 14.7% to Rs 13,081 crore in Q3FY25, as against Rs 15,333 crore EBITDA in Q3FY24. However, revenue climbed by 1.8% to Rs 1.13 lakh crore in the third quarter of FY25, compared to revenue of Rs 1.11 lakh crore in Q3 of FY24.
Meanwhile, the company's luxury brand Jaguar Land Rover (JLR) posted Q3 FY25 Revenue at £7.5 billion (+1.5%), EBITDA of 14.2% (-200 bps), EBIT of 9.0% (+20 bps), and PBT (bei) £523 million in Q3FY25.
Should You Buy Tata Motors Stock?
As per Elara Capital, the management expects Q4 MHCV growth to be flat on a high base, which will be an improvement from Q3 levels. Buses continue to see strong demand. That said, TTMT expects some recovery in CV demand in FY26, given favourable base of FY25, along with higher infrastructure spending and government capex expectations. On the PV front, robust Q3 retails helped reduce inventory, which now stands at
Further, it pointed out that management sees this as achievable, given that Q4 is a seasonally strong quarter and lower D&A expenses should help further. However, it is cautious about global demand in the near term, especially as China's demand faces headwinds due to increased competition (although the impact is lower for imported higher end of the market and lower than peers). The company has maintained an FCF target of GBP 1.3mn in FY25E.
Overall, on the valuation, Elara's note said, "JLR continues to see challenges in global markets, especially in China. JLR's China volume contributes ~21% to sales (13% ex CJLR), which is relatively lower compared with peers (at 20-40%). While JLR's EBIT margin at 9% in Q3FY25 was led by a depreciation decrease, its guidance for net debt zero for FY25 was maintained, which is a positive. While JLR's near-term Q4FY25 EBIT margin outlook is 10%+, the guidance for FY26 EBIT margin at 10% will be reviewed in JLR's Investor Day (in Q1FY26). We had recently cut earnings for TTMT in our thematic and hence maintain our TP at INR 909."
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