Tata Motors’ stock prices jumped 8 percent in early trading on May 13 – the day after the company reported its March quarter revenue. The company’s shares jumped 8 percent in the opening of an agreement at RS 401 in BSE after the net loss of the homegrown car maker narrowed to 1,033 Crore RS in the quarter ended in March, compared to the loss of 7,605 Crore Hospital in last year’s period. It witnessed more than 11 percent of years-year-year (yoy) decline in revenue to RS 78,439 Crore.

The company in a statement said, “Demand remains strong despite geopolitical and inflation problems. The supply situation gradually improves, while commodity inflation tends to remain at a high level. We hope that the performance will increase throughout the year because China Covid-19 and the supply of semiconductor will increase and aim to provide a strong increase in EBIT (income and tax) and free cash flow in TA 23 to approach the net debt automatically by the TA 2024. “

For the Jaguar Land Rover (JLR) business, revenue is £ 4.8 billion in the fourth quarter, down 27 percent from last year, hit by the previous generation Range Range Runout.

Tata Motors: What should investors do?

We maintain our positive attitude towards Tata Motors because the PV segment is likely to get further market share led by a changed portfolio, customer preferences for SUVs and increased EV penetration, Volume CV will continue to benefit from the increase in cycles, increase the use of fleets and transportation levels , the resurrection again in the JLR and a strong order book to benefit and encourage the FCF generation, “said Broker Prabhudas Lilladher.

This has maintained a ranking of ‘buying’ on Tata Motors shares with a SOTP -based target based on RS 600. This broker expects 1QFY23 to witness pressure, however, more than new FY23 products, the momentum of demand and pass price will increase profitability, in his view.

Jaguar Land Rover (JLR) income is £ 4.8 billion in the fourth quarter, which is 27 percent lower compared to last year, hit by the previous generation Range Range Runout.

Strong JLR Orders Book in 168,000 units, while the dealer inventory is low. New generation products such as RR/RR Sport are expected to support ordering orders in front. Chip inventory must increase ahead, but in a staggering way. We expect a strong 20 percent cagr for Fy22-24e. Reaffirming with a revised SOTP -based target price of RS 535 (RS 530 previously), based on the estimated June 2024E (March 2024E before), “Emkay said.

CLSA Broking House has increased the ranking of Tata Motors to less than sales and also raised the target price to RS 411 from RS 392 per share. The domestic business is strong, while JLR is challenging to continue and disappoint because of negative surprises on ASP. Higher volume, mixture, and realization causes margin recovery in CV and PV, while strong demand must cause volume growth.