Today in the stock market, Tata Motors faced significant selling pressure following the announcement of its Q4 results for 2024 last Friday. The company’s shares opened lower at ₹1,005 each on the National Stock Exchange (NSE), quickly plummeting to an intraday low of ₹947.20 per share shortly after the market opened. This sudden drop amounted to a loss of over 9 percent within just a few minutes of trading on Monday. Investors reacted swiftly to the news, driving down the stock price as concerns likely arose regarding the reported financial performance. The pronounced decline in Tata Motors’ share price indicates a notable shift in market sentiment, possibly reflecting derscores the volatility inherent in equity markets and highlights the impact disappointment or apprehension about the company’s quarterly results. This sharp downward movement unof corporate earnings announcements on stock prices. As trading continues throughout the day, market participants will closely monitor Tata Motors’ performance to gauge any further developments or shifts in investor sentiment.
Triggers for Tata Motors share price fall
Connecting Tata Motors’ share price decrease to the Q4 results 2024 announced on Friday last week, Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, stated, “Tata Motors Q4 results 2024 were modest, with minimal margin expansion across businesses despite greater volumes. The company remains cautiously hopeful across all businesses, with H1 likely to be weaker and the premium luxury market considered as resilient despite overall developing demand worries. While deleveraging progress continues, we believe the best may be behind for all businesses due to i) a declining orderbook, normalizing mix, and higher customer acquisition costs at JLR, with FCF generation to normalize; ii) a flattish growth outlook for the domestic CV space; and iii) a moderating India PV outlook (though TTMT to outperform on new launches). FY25E/26E EPS is virtually unchanged (we assume a 7/8% revenue/EBITDA CAGR over FY24-26E).
Expecting more downsides in Tata Motors’ share, the Emkay Global expert said that Tata Motors’ share price may drop further to the tune of ₹950 apiece.
Motilal Oswal remains ‘neutral’
Motilal Oswal reiterated its ‘neutral’ assessment on Tata Motors’ share price forecast, stating, “Tata Motors’ 4QFY24 result was operationally in line with our estimate, with EBITDA margin expanding 30bp QoQ to 14.2%.” While there is no doubt that TTMT produced an incredibly strong success across its core areas in FY24, there are evident hurdles ahead that will likely impede its performance. We have cut our FY25/FY26 EPS expectations by 3%/5%. The stock currently trades at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA. We remain neutral with our FY26E SOTP-based target price of ₹955.
Tata Motors Q4 results 2024
Tata Motors unveiled its fiscal results for the March quarter on May 10, 2024, showcasing remarkable growth. The company marked a substantial 222 percent surge in its net profit compared to the previous year, soaring to ₹17,407.18 crore. Alongside this, Tata Motors experienced a noteworthy 13.3 percent increase in consolidated revenue, reaching ₹1,19,986.31 crore. These figures reflect the company’s robust performance amidst market dynamics, indicating successful strategies and effective operational execution. The surge in net profit underscores Tata Motors’ ability to capitalize on opportunities and navigate challenges within the automotive sector. Additionally, the significant rise in consolidated revenue signifies sustained growth momentum and market competitiveness. These results are likely to instill confidence among investors and stakeholders, reaffirming Tata Motors’ position as a key player in the global automotive landscape. As the company continues to innovate and adapt to evolving market demands, it is poised for further growth and success in the future.
