Brokerages UBS, Nuvama, and Emkay have signaled a cautious outlook for Tata Motors as challenges weigh on its luxury arm Jaguar Land Rover and domestic passenger vehicle business. UBS and Nuvama have reduced their target prices, citing a significant drop in JLR's margins and heightened competition, while Emkay maintains a positive view but has also lowered its target price. Despite this, analysts expect a gradual improvement in JLR's performance and note Tata's India CV business remains resilient.
In the midst of the festive season, auto companies in India saw a significant uptick in their stock prices on Friday as October sales data was released. The Nifty Auto index recorded a 1.5% intraday jump, led by major players like Mahindra & Mahindra, Eicher Motors, and Tata Motors. M&M in particular had a record-breaking month, with the highest ever monthly SUV sales. Other companies like Royal Enfield and Hyundai Motor India also saw impressive numbers, providing relief from previous concerns about sluggish demand in the industry.
Tata Motors has suspended the trading of its DVR shares and announced Sunday, September 1 as the record date for its capital reduction scheme. The company has established a trust to facilitate the conversion of DVR shares to ordinary shares, with the conversion ratio set at 10:7. Shareholders will be subject to TDS and taxes on the deemed dividends received from the company's standalone reserves.
In an effort to better capitalize on growth opportunities, Tata Motors has announced its plan to demerge its commercial and passenger vehicle segments into two separate listed entities. The move will allow the commercial vehicle vertical to become more agile and take advantage of global opportunities. According to the company's Executive Director, the demerger will help secure synergies across the passenger vehicle, electric vehicle, and Jaguar Land Rover segments. The company's passenger vehicle division is also expected to see moderate growth due to increasing customer preference for safer, smarter, and greener vehicles. Stay updated on all the latest business, politics, technology, and automotive news on Zeebiz.com.
Tata Motors' share price initially rose but soon fell, prompting market analyst Manas Jaiswal to advise caution for investors. The stock remains below its crucial 50-day moving average and Jaiswal sees no signs of a reversal, recommending waiting for a climb above Rs 982 before considering buying. The group company Tata Power is also seeing a rise in shares by 2.5 per cent on the BSE.
Tata Motors' share price initially fell by nearly 9% but has rebounded in the morning trade. The company's Q4 results showed a threefold increase in net profit, causing a temporary rise in share price. However, the stock has declined below Rs 1,000 as it failed to meet Street estimates on revenue and Ebitda. This has caused various brokerages to retain a 'Reduce' position on Tata Motors' shares.
Tata Motors' Q4 results for 2024 saw a surge in net profits, leading to an increase in share prices. However, the company's revenues and Ebitda fell short of Street estimates, resulting in a decline of over 8% for its share price on Monday. This caused the BSE benchmark Sensex to swing over 980 points, while Tata Motors' total consolidated revenue from operations stood at Rs 1,19,986.31 crore.
As the stock market opens today, investors are keen on monitoring the performance of leading companies such as Tata Motors, AU Small Fin Bank, Tata Power, RIL, and ONGC. The market is expected to react to recent news that have the potential of impacting these companies, prompting market players to keep a close eye on the stock prices. Moreover, market triggers such as the ongoing pandemic and global economic trends are also factors to be considered in today's stock market activities. #StockInNews provides deeper insights on the current state of these top stocks.
As investors prepare for the trading session on March 6, top brokerages on Dalal Street have released their recommendations for a dozen stocks, including Indraprastha Gas Ltd, Mahanagar Gas Ltd, Tata Motors, SBI Life, Grasim Industries, REC, PFC, Infosys, and TCS. Jefferies, Morgan Stanley, CLSA, and HSBC share their outlooks and price targets for each stock.
Tata Motors' recent announcement of demerging its PV and CV businesses into two separate entities has generated buzz in the business world. Analysts are predicting its impact on equity indices, as well as discussing the move's potential for unlocking synergies between PV, EV, and JLR businesses. The demerger is expected to take around 15 months, and Nuvama sees it as a positive step towards improving the company's overall performance.