Tata Motors slips 4% post Q1 results; BofAML, CLSA, Nomura slash target price

tata motors

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Tata Motors slipped over 4 percent in morning trade on Wednesday after the global automaker reported a consolidated net loss for the quarter ended June at Rs 1,862.57 crore, missing estimates by a huge margin.

Reacting to the results, shares of Tata Motors slipped over 4 percent in morning trade and was trading close to its 52-week low of Rs 247.30 on the NSE. It was the top most loser on Nifty. Tata Motors DVR was also down over 3 percent.

Last year, the same quarter when the company had reported a one-time gain of Rs 3,600 crore after recalibrating the method of calculating pension liabilities at Jaguar Land Rover its net profit had come in at Rs 3200 crore. Tata Motors would have been in loss same quarter last year if not for this one-time gain.

Diesel concerns in the UK and Europe, as well as the duty change impact in China, hit the company during the quarter. Earnings before interest and tax margin in China was negative 3.7 percent for JLR due to de-stocking, duty change in China, forex revaluation and higher depreciation and amortisation.

Most global brokerage firms maintain their rating but some of them slashed their target price for the global auto giant as well as earnings estimates for FY19-20:

Recommendation from global brokerage firms:

Bank of America Merrill Lynch: Buy| Target price cut to Rs 400 from Rs 425

Bank of America Merrill Lynch maintains a buy rating on Tata Motors post Q1 results but slashed its target price to Rs 400 from Rs 425. JLR missed margins on destocking impact. CV sales growth was strong for India region

Full year EBIT margin guidance of 4-7 percent is maintained, but the global investment bank reduces FY19/20 EPS by 15%/12%. The risk-to-reward is however favourable for investors.

CLSA: Sell | Target cut to Rs 250 from Rs 295

CLSA maintains a sell call on Tata Motors post Q1 results but slashed its target price to Rs 250 from Rs 295 earlier. Weak JLR performance was dragged down to a consolidated Q1 loss.

The automaker is regaining share in the Indian trucks segment but demand remains a concern. The JLR outlook remains weak. CLSA lower FY19-20 EPS estimates by 9%-28% factoring in lower volumes & margins at JLR.

Nomura: Buy | Target price cut to Rs 356 from Rs 495

Nomura maintains a buy rating on Tata Motors post Q1 results but lowers its target price to Rs 356 from Rs 495 earlier. The global investment bank lowers FY19-21F volume estimates by 4-8% for JLR.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.