Tata Motors gains up to 2% after Q2 show: Should you buy, hold or sell?

Tata Motors shares in Monday's trade (November 11) gained up to 2 per cent in early trade to the day's high price of Rs 821 per share even as the company came up with weak Q2 results, nevertheless the management's outlook for its JLR segment remained strong.

For the reporting quarter, the consolidated PAT at the company declined 11 per cent to Rs 3,343 crore as against Rs 3,764 crore in the same quarter last year. Revenue at the company also edged lower for the review period and infact came in lower than estimates of Rs 1,06,039 crore at Rs 1,01,450 crore. In the same period last year, revenue was at 1,05,129 crore, a 3.5 per cent decline year-on-year (YoY).

How global brokerages rate Tata Motors post its Q2 show?

Hong Kong-based global brokerage Tata Motors has upgraded the stock to outperform from the earlier 'hold', slashing the target to Rs 968 from the earlier Rs 975, suggesting an upside of 21 per cent. The company has given a strong guidance outlook for JLR in respect of its EBIT margin for FY25 and FY26. Further, the management remains cautious on CVs, nonetheless, new launches in PV will drive growth.

Jefferies too has continued with its previous 'buy' rating and a slashed target of Rs 1,000 reduced from the earlier Rs 1,330 per share. The company has expected a weak quarter, nevertheless, the brokerage is optimistic about a better H2. The brokerage mentioned that the company's JLR division is facing tough macro in China and Europe,

Q2 was also impacted by aluminum supply constraints and delayed shipments. Jefferies expects a better H2 with the company maintaining JLR's guidance for FY25. India CV and PV demand has slowed down too, but CV profitability is holding up well.

Macquaries is the most optimstic with the target pegged at Rs 1,278 per share, a sharp 59 per cent potential upside from the previous close.
 
However, Goldman Sachs, slashed the target to Rs 820 from the previous Rs 950, with the 'neutral' call on the stock.