Shares of Tata Motors hit a 52-week high of Rs 537.15 apiece on the BSE on May 15, 2023, after the company reported a strong set of numbers for the March 2023 quarter (Q4FY23). At the time of writing this news, the stock was trading nearly 3.50 per cent higher at Rs 533.50 apiece on the BSE. The scrip had closed at Rs 515.65 on Friday. 

For the March quarter, the auto major reported a consolidated profit of Rs 5,408 crore against a loss of Rs 1,033 crore in the year-ago period. The company also said that its board of directors has recommended a final dividend of Rs 2 per ordinary share (100 per cent of Face Value) and Rs 2.1 per share for DVR shareholders subject to approval by the shareholders at the annual general meeting (AGM). This is the first dividend announcement by the company after 7 years. The last time the auto company had announced a dividend was in FY16. 

Total revenue from operations stood at Rs 10,5932.35 crore, up 35 per cent against Rs 78,439.06 crore in the year-ago period. 

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The top line and bottom line beat analysts' expectations. ZEE Business Research had projected the Tata Group company to post a consolidated net profit of Rs 2,550 crore. The company had posted an exceptional loss of Rs 714 crore last year. Tata Motors Q4FY23 revenue was expected to rise by 23.7 per cent to Rs 97,000 crore YoY against Rs 78,439 crore in the year-ago period. Margins were expected to improve to 11.5 per cent from 11.1 per cent on a YoY basis. 

ICICI Securities, in the earnings review note, says, "Management is aiming at GBP2bn (2 billion pounds) of FCF for JLR in FY24, which we believe is doable, even after factoring the slight increase in capex outlook to GBP3bn per annum from FY24. Without material changes to our volume and margin estimates, we maintain BUY on TTMT with a revised DCF-based target price of Rs 620 (earlier Rs608), implying ~10x FY25 India business and 2.5x JLR EV/EBITDA."

STOCK PERFORMANCE

In the last 12 months, the stock has rallied 27 per cent (as of Friday's close). In comparison, the Nifty Auto index has slipped nearly 31 per cent while the Nifty50 index has risen 15.6 per cent, as per publicly available Trendlyne data.