Now Reading: Tata Motors CV Jumps 6% After 83% Profit Jump, Brokerages Bullish
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Tata Motors CV Jumps 6% After 83% Profit Jump, Brokerages Bullish
Tata Motors CV Jumps 6% After 83% Profit Jump, Brokerages Bullish
Shares of Tata Motors' commercial vehicles division surged over 6% on Thursday after the company reported an 83% year-on-year rise in consolidated net profit to Rs 2,600 crore for the June quarter.…
The Story in Brief
Shares of Tata Motors' commercial vehicles division surged over 6% on Thursday after the company reported an 83% year-on-year rise in consolidated net profit to Rs 2,600 crore for the June quarter. Revenue from operations rose 19.3% to Rs 20,667 crore, driven by demand from infrastructure, logistics and freight sectors.
Nomura upgraded the stock to 'Buy' with a target of Rs 554, citing better-than-expected EBITDA. CLSA retained 'Outperform' with a target of Rs 596. However, the two sources disagree on the EBITDA margin: Freepress Journal reports an improvement to 15.83% from 11.98%, while The Hindu Business Line reports a margin of 11.3%, down 76 bps year-on-year, partly due to commodity inflation. A 2.5% price hike in July is expected to support margins.
The Indian Opinion
Brokerages are rushing to raise targets after one good quarter, but the conflicting margin numbers from two credible outlets show how opaque these results remain. Commodity costs and supply constraints are real headwinds, and the 2.5% July hike may not fully offset them if demand growth slows. The real test will come when Q2 volumes are out: will double-digit growth actually translate into margin expansion, or is the market pricing in too much optimism?
Sources (2): freepressjournal.in, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
