Tata Motors zooms as carmaker woos Street with a return to profit after two years of losses

Tata Motors Share Price NSE: Tata Motors shares surged on Friday, after India's third largest carmaker reported a quarterly net profit that far exceeded analysts' expectations boosted by an all-round strong performance. The Tata Motors stock gained by as much as Rs 34.2 or 8.2 per cent to Rs 453.2 apiece on BSE in early deals.  

At 9:40 am, Tata Motors were trading higher by 6.4 per cent at Rs 445.6 apiece on the bourse with huge volumes. A total of 8.5 lakh Tata Motors shares already changed hands for the day so far, as against a daily average of 6.9 lakh in the last two weeks, according to exchange data.  

Most brokerages have bullish views on the Tata Motors stock after the auto giant's earnings announcement: 

Jefferies maintained a 'buy' rating on Tata Motors and raised its target price for the stock by Rs 25 to Rs 565. CLSA, JPMorgan, Morgan Stanley and Goldman Sachs revised their target prices for the stock upwards by Rs 8-30.

On the other hand, Nomura reduced its target for the stock to Rs 508 from Rs 521 and retained a 'buy'.

Tata Motors Target Price 2023

Tata Motors Q3 Results 

After market hours on Wednesday, Tata Motors reported a consolidated net profit of Rs 3,043 crore for the December quarter — its first profit in almost two years — driven by robust sales, as Dalal Street headed into the Republic Day holiday. The company had registered a net loss of Rs 1,451 crore for the corresponding period a year ago. 

Its total income increased 22.5 per cent on a year-on-year basis to Rs 88,489 crore, according to a regulatory filing.

According to Zee Business research, Tata Motors' net profit was estimated at Rs 530 crore with revenue growth of 14.5 per cent to Rs 82,710 crore.

The Tata group carmaker's margin improved by 150 basis points on a year-on-year basis to 10.9 per cent, better than the estimate of 10.7 per cent by Zee Business research.  

Jaguar Land Rover Results 

Tata Motors subsidiary Jaguar Land Rover's revenue stood at 6 billion pounds, up 28 per cent on a year-on-year basis, on teh back of better supplies, a strong model mix and pricing, according to a statement by the Mumbai-based carmaker. JLR's profit before tax stood at 265 million pounds, as against a loss of nine million pounds a year ago. 

Tata Motors Share Price History  

Tata Motors shares have lost around 10 per cent of their value in the past one year, a period in which the Nifty50 benchmark has risen 3.6 per cent.

In the quarter ended December 2022, the Tata Motors stock lost 4.1 per cent of its value while the 50-scrip index gained 5.9 per cent. 

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