Wondering about Tata Motors Share Price Target after Q3 results? Dive into this comprehensive article to gain valuable insights and expert analysis on the current scenario, projections, and what lies ahead for investors.
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Tata Motors Share Price Target:
Tata Motors, the country’s largest automobile company, announced the results for the December quarter on February 2. On a consolidated basis, profit more than doubled to Rs 7025 crore. A year ago, the company’s profit was Rs 2958 crore and September quarter profit was Rs 3764 crore. Tata Motors shares closed at Rs 878 after the results. At this point, it’s at an all-time high.
Tata Motors Q3 Results
According to the information available on the BSE website, on a consolidated basis, the revenue in the December quarter was Rs 110577 crore with a jump of 25%. EBITDA was close to Rs 15,800 crore, up 60.6 per cent. Ebitda margin improved by 320 bps to 14.3 per cent. EBIT margin improved 390 bps to 8.3 per cent. The company has generated a cash flow of about Rs 6400 crore. A year ago, it was around Rs 1,100 crore.
Automotive debt down to Rs 29200 crore
In Q3, the company reduced debt by about Rs 9500 crore. The net automotive debt has come down to around Rs 29200 crore. The management believes that the growth of all three verticals will remain positive. Commenting on the performance, PB Balaji, Group CFO, Tata Motors, said, “We have been consistently performing well over the last six quarters. We are successfully moving ahead on the de-leveraging plan.
How was the performance of JLR?
The revenue growth of JLR i.e. Jaguar Land Rover vertical, which is the most important for the company, was 7375 million pounds with a jump of 22%. EBITDA margin improved by 410 bps to 16.2 per cent. EBIT margin improved by 510 bps to 8.8 per cent. Profit before tax (PBT) increased from £362 million to £627 million. Free cash flow stood at 626 million pounds and 1.4 billion pounds of free cash flow has been generated so far in FY24. Net debt has fallen to £1.6 bn.
How has the commercial vehicle segment fared?
Talking about the performance of the commercial vehicle segment, the revenue was Rs 20123 crore with a jump of 19.2%. EBITDA margin improved by 270 bps to 11.1 per cent. EBIT margin improved by 270 bps to 8.6 per cent. Profit before tax increased from Rs 718 crore to Rs 1656 crore.
How has the passenger vehicle segment fared?
In the passenger vehicle segment, the revenue was Rs 12910 crore with a jump of 10.6 per cent. EBITDA margin declined 30 basis points to 6.6 per cent. EBIT margin improved by 60 bps to 2.1 per cent. Profit before tax increased from Rs 87 crore to Rs 408 crore.
Tata Motors share price
For Tata Motors, Elara Capital has given a rating of Accumulate and a target of Rs 935. Nuvama advises HOLD and gives a target of Rs 960. Tata Motors shares are at an all-time high. In one year, it has given a return of more than 100 percent. A year ago, on January 6, 2023, this share was at the level of Rs 381, which is the lowest level that year.
Tata Motors Share Price Target after Q3 Results: FAQs
What were Tata Motors’ key financial highlights in Q3? Tata Motors reported robust revenue growth and improved profitability in Q3, driven by strong performance in key market segments and operational efficiency initiatives.
How did the market react to Tata Motors’ Q3 results? Following the Q3 announcements, the market exhibited positive sentiment towards Tata Motors, reflecting confidence in its growth trajectory and strategic initiatives.
What factors are likely to influence Tata Motors share price target in the short term? In the short term, factors such as macro-economic trends, industry dynamics, and company-specific developments are expected to influence Tata Motors’ share price target post-Q3 results.
Is Tata Motors a viable investment option post-Q3 results? With its resilient performance and strategic initiatives, Tata Motors presents a compelling investment opportunity post-Q3 results, poised for growth amidst evolving market dynamics.
How can investors navigate volatility in Tata Motors share price post-Q3 results? Investors can navigate volatility in Tata Motors’ share price post-Q3 results by adopting a disciplined investment approach, focusing on long-term fundamentals, and diversifying their portfolios.
What long-term prospects does Tata Motors offer investors post-Q3 results? Post-Q3 results, Tata Motors demonstrates promising long-term prospects, fueled by product innovations, market expansion strategies, and a resilient business model.
Conclusion
In conclusion, Tata Motors’ share price target post-Q3 results reflects a convergence of internal performance, market dynamics, and investor sentiment. By leveraging expert insights and strategic foresight, investors can capitalize on opportunities and navigate market volatility with confidence.