Now Reading: Tata Motors CV shares jump 6% after 83% profit surge in Q1
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Tata Motors CV shares jump 6% after 83% profit surge in Q1
Tata Motors' commercial vehicle shares surged 6% on August 13 after the company reported an 83% year-on-year jump in consolidated net profit to Rs 2,560 crore for the June quarter of FY27.…
The Story in Brief
Tata Motors' commercial vehicle shares surged 6% on August 13 after the company reported an 83% year-on-year jump in consolidated net profit to Rs 2,560 crore for the June quarter of FY27. Revenue rose 19% to Rs 20,667 crore, driven by strong demand from infrastructure and logistics. The stock touched a high of Rs 485 on the BSE.
Nomura upgraded the stock to 'buy' with a target of Rs 554, citing better-than-expected EBITDA and strong demand across segments. CLSA retained its 'outperform' rating with a Rs 596 target. However, managing director Girish Wagh flagged commodity cost pressure and EV supply chain bottlenecks, which he expects to ease by end-Q2. The company took a 2.5% price hike in July to mitigate costs.
The Indian Opinion
The cheer over Tata Motors CV's profit jump glosses over real headwinds. Commodity costs ate 340 basis points of margin, and the 2.5% July price hike may not fully offset inflation. Brokerages are not unanimous: Motilal Oswal still rates the stock 'neutral'. The EV supply chain bottleneck, though expected to ease by end-Q2, remains a risk. Watch if double-digit volume growth in Q2 can actually materialise without hurting margins further.
Sources (4): freepressjournal.in, thehindubusinessline.com, auto.economictimes.indiatimes.com, auto.economictimes.indiatimes.com (2)
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
