Now Reading: Tata Motors PV shares slide 6% after Q1 net profit plunges 80%
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Tata Motors PV shares slide 6% after Q1 net profit plunges 80%
Tata Motors Passenger Vehicles shares fell 6% on Friday to around Rs 329 after the company reported an 80% drop in Q1 consolidated net profit to Rs 775 crore. Revenue rose 9%…
The Story in Brief
Tata Motors Passenger Vehicles shares fell 6% on Friday to around Rs 329 after the company reported an 80% drop in Q1 consolidated net profit to Rs 775 crore. Revenue rose 9% to Rs 94,827 crore. The decline was driven by challenges at its British luxury unit JLR, which saw wholesale volumes fall 9.2% due to a component-supplier fire and Middle East disruptions. Elevated raw material costs also hurt margins.
Domestic volumes rose 46% year-on-year and EV sales surged 112%. However, Motilal Oswal retained a 'Sell' rating with a Rs 310 target, citing margin pressure from a poor product mix and JLR headwinds. JM Financial kept an 'Add' rating with a Rs 375 target, noting the company’s pivot to North America and upcoming Jaguar and Range Rover EV launches.
The Indian Opinion
The selloff reflects panic over JLR’s troubles, but the domestic business is surging: volumes up 46% and EVs more than doubled. Yet Motilal Oswal sees further pain with a target of Rs 310, while JM Financial keeps an 'Add' rating at Rs 375. Which analyst is right? Watch JLR’s mid-quarter volume update and whether its cost-cutting yields real margin recovery.
Sources (2): auto.economictimes.indiatimes.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
