Find out the expert views on Tata motors share price fall.Tata Motors experienced a significant decline of 9% in its shares during early trading on Monday, despite the company’s impressive fourth-quarter financial results. By 10:23 am, Tata Motors shares had dropped by 8.97% to Rs 952.95 on the Bombay Stock Exchange (BSE). It reaches a day’s low of Rs 948 in the initial trading session.
Tata motors Q4 results
The company reported a remarkable 222% increase in consolidated net profit to Rs 17,407 crore in Q4FY24, with a 13% rise in revenue from operations to Rs 1.2 lakh crore.Despite the strong performance in the fourth quarter, Tata Motors received a mixed response from brokerages. It leads to a decline in its stock price.
Expert views on Tata motors share price fall
Several brokerages have raised concerns about the automaker’s ability to maintain the current demand momentum in the future. Emkay Global is a brokerage firm. It has decided to maintain its ‘Reduce’ rating on Tata Motors stock. It keeps the target price at Rs 950 per share.The firm characterized Tata Motors’ Q4 earnings as lackluster. It is highlighting the limited margin expansion observed across its various business segments despite an increase in volumes. Tata Motors has been making strides in reducing its debt. Emkay Global is of the opinion that the peak performance for all businesses may have already been reached.This conclusion is drawn from several factors including a decrease in the order book, normalization of product mix. It is a stagnant growth forecast for the domestic commercial vehicle (CV) sector, and a moderating outlook for the Indian passenger vehicle (PV) market. Nomura revised their rating on Tata Motors stock from ‘buy’ to ‘neutral’. It expressed concerns about potential demand risks for JLR. They anticipate a slowdown in FY25, specifically pointing to an expected decrease in local passenger vehicle (PV) demand as a result of ongoing elections.
Morgan Stanley rating on Tata motors share price
In a similar vein, Morgan Stanley adjusted their rating on the stock from ‘overweight’ to ‘equal-weight’. It is indicating restricted incremental upside following a ‘banner year’. They emphasized the potential danger of a sudden EV pickup-driven recovery in FY25.
