Tata Motors Down 7.6% in Early Trade; Brokerages Cut Target Price
Tata Motors declined by 7.6% in the early trade at ₹695.3 on January 30 after reporting poor Q3 (Sep-Dec) numbers.
Tata Motors Down 7.6% in Early Trade; Brokerages Cut Target Price
Shares of Tata Motors declined by 7.6% in the early trade at ₹695.3 on January 30 after reporting poor Q3 (Sep-Dec) numbers. Brokerage firm Jefferies downgraded the stock to “underperform" from “buy” by reducing the target price to ₹660 from ₹930.
Tata Motors is facing several challenges including poor demand for its UK arm, Jaguar Land Rover (JLR), in China and Europe. The automaker also reported rising customer acquisition costs, surging warranty expenses, and a weakness in both commercial and passenger vehicle demand. Competition in the electric vehicle sector is causing dents in Tata Motors’ EV business.
Net profit during the December quarter declined by 22% YoY at just ₹5,451 crore, while revenue from operations increased by 3% YoY at ₹1.13 lakh crore. Consolidated EBITDA clocked at ₹15,500 crore.
What did other brokerages have to say?
UBS
By giving a “sell” rating on the stock, the brokerage said that Tata Motor’s outlook for the Q4 looks ambitious despite the uncertainty surrounding financial years 2026 and 2027. Recovery in China is extremely important for Jaguar Land Rover (JLR) to achieve a 10% EBIT margin in the upcoming financial year, the brokerage noted. UBS set a target price of ₹760.
Morgan Stanley
Morgan Stanley gave an “equal-weight" to the stock noting that Q3 numbers were weaker than expected. The brokerage highlighted that JLR will reassess its FY26 guidance following Q4 results. The firm has set a target price of ₹853