Tata Group-backed automobile giant, Tata Motor share price has been trading near Rs 800 mark, and is going to be in focus ahead. The company has announced Q3FY25 sales figures of its luxury car Jaguar Land Rover (JLR), while further declared the date of its financial result for third quarter of FY25. Brokerage Sharekhan has announced BUY recommendation for target price of Rs 1,099.
Tata Motors Share Price:
On BSE, the auto giant stock is at Rs 794.85 apiece, with a market cap of Rs 2,92,594.21 crore. The stock has significantly corrected from its 52-week high of Rs 1,179.05 apiece, while it is closer to its 52-week low of Rs 718 apiece.
Notably, the start of 2025 has been healthy for Tata Motors as the stock zoomed by 7.3% so far in January month. In six months, the stock has dipped by nearly 22%.
JLR Sales:
JLR has reported a surge in wholesale volumes for the third quarter of FY25 (three-month period to 31 December 2024), reflecting an improvement following supply disruptions in the second quarter of FY25.
As per the regulatory filing, 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.
Also, retail sales of 106,334 units in the third quarter (including the Chery Jaguar Land Rover China JV) were down 3% compared to Q3 FY24 and up 3% compared to Q2 FY25. Retail sales for the financial year to date were 320,622, up 1% compared to the prior year.
Tata Motors Q3 Results Date:
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.
BUY Tata Motors Stock?
The stock witnessed a jump in the initial trading sessions of January despite the company's December 2024 sales data registering muted growth. 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, the company has hiked the prices of its trucks and buses portfolio by 2% from January 1. The portfolio is part of its commercial vehicle segment.
Going ahead, apart from sales figures and upcoming Q3 results, another key factor to watch out in Tata Motors is its business split-up in a ratio of 1:1. 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.
In its latest report, Sharekhan on Tata Motors said, "In line with estimates: CV segment registered -1% yoy decline and 22.5%mom increase in volumes to 33,875 units (against estimates of 30,200 units). PV segment registered a 1% y-o-y increase and 6 % mom decline in volumes to 44,289 units (against estimates of 44,400 units)."
Following the latest sales data, Sharekhan recommended BUY on Tata Motors for target price of Rs 1,099.
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