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Tata Motors PV shares fall 6% after Q1 net profit drops 80%
The company reported consolidated net profit of ₹775 crore, down from ₹3,924 crore a year earlier, as challenges at JLR and higher raw material costs weighed on margins.
Tata Motors Passenger Vehicles shares fell about 6% to around ₹329 in Friday trade after the company reported a sharp drop in June-quarter performance.
LiveMint Markets reported consolidated net profit of ₹775 crore, an 80% decline from ₹3,924 crore in the same period last year. The profit decline was linked to ongoing challenges at the UK luxury unit JLR and elevated raw material costs.
Analysts said the weakness is likely to persist. Motilal Oswal kept a Sell rating on Tata Motors PV with an unchanged SoTP-based target price of ₹310, citing multiple headwinds, including margin pressure from adverse product mix and rising input costs at India’s business and demand and cost challenges at JLR.
JM Financial maintained an Add rating with an unchanged SoTP-based target price of ₹375, valuing JLR at 3x EV/EBIT and the standalone business at 11x EV/EBITDA. The brokerage said JLR faces a challenging China market and expects continued disruptions in the Middle East to weigh on performance, while it raised its FY27E domestic PV volume growth estimate to about 16.5% but cut its FY27E domestic PV EBITDA margin estimate to 6.8% from 8.3%.