Now Reading: Tata Motors shares split as CV unit gains, PV arm tumbles
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Tata Motors shares split as CV unit gains, PV arm tumbles
Tata Motors shares presented a split picture on Friday. The commercial vehicles arm rose 6% after brokerages upgraded it on a brighter outlook. Nomura raised its target to Rs 554 on healthy…
The Story in Brief
Tata Motors shares presented a split picture on Friday. The commercial vehicles arm rose 6% after brokerages upgraded it on a brighter outlook. Nomura raised its target to Rs 554 on healthy double-digit growth, while Emkay set a Rs 700 target citing EV momentum and price hikes. The passenger vehicles arm, however, fell 5% after reporting an 80% plunge in net profit to Rs 775 crore for the June quarter. Revenue rose 9% to Rs 95,799 crore. Citi and Motilal Oswal reiterated 'Sell' ratings on the passenger vehicle stock, flagging severe cost headwinds and margin pressure.
Brokerages remain divided. For the CV business, CLSA and JPMorgan also raised targets. For the PV stock, Morgan Stanley maintained 'Equal-Weight' at Rs 367, while Nomura kept 'Neutral' at Rs 389. Jaguar Land Rover's profit slumped 73% to £66 million in the June quarter, hit by a supplier fire, Middle East tensions, and a planned Jaguar wind-down. The Economic Times reports that JLR's free cash flow breakeven and new EV launches are now key watchpoints.
The Indian Opinion
Markets treat Tata Motors as two companies, yet the stock is one ticker. The CV cheer is real, freight activity, e-way bill growth, and order books support it. But the PV and JLR troubles are more structural than cyclical. A single fire at a supplier doesn't explain a 73% profit plunge at JLR. The narrative of 'temporary pain' meets hard numbers: commodity headwinds of 350 basis points in one quarter, and margin compression that brokerages say will persist. The key test is not the next quarter's profit, it is whether JLR's cost-cutting can stop its free cash flow from bleeding into negative territory.
Sources (2): businesstoday.in, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
