Tata Motors Share Price Q4 2024: Should you Buy or Wait?
Tata Motors share Price plummet 9%
Tata Motors shares experienced a significant downturn by 9% following the disclosure of their Q4 results for 2024. Is this a moment to seize an opportunity? In the realm of stock trading, nothing remains static, and decisions demand careful contemplation.
In the early hours of Monday, Tata Motors shares underwent a notable sell-off. The unveiling of their Q4 results for 2024 on Friday last week seems to have had a palpable impact. As the market commenced, the price of Tata Motors shares plummeted sharply. Opening at ₹1,005 per share on the NSE, they swiftly descended to an intraday low of ₹947.20. This swift decline marked a staggering loss of over 9% on Monday morning.
Factors Contributing to the Decrease in Tata Motors Stock Value
Senior Research Analyst at Emkay Global Financial Services, Chirag Jain, draws a connection between the drop and the Q4 results.
He observes that despite a substantial 222% year-on-year increase in net profit, the company’s margin expansion across its various sectors was limited.
Jain cautiously notes that while Tata Motors maintains an optimistic outlook, the first half is expected to be challenging. However, he also identifies the premium luxury segment as resilient amidst broader concerns regarding emerging demand.
Looking forward, he anticipates a plateau in growth for various sectors, emphasizing factors like declining order books, normalized mixes, and escalating customer acquisition costs at JLR. These considerations lead to projections of normalized free cash flow generation.
Motilal Oswal's decision to maintain a 'neutral' stance is triggered by various factors.
Meanwhile, financial services firm Motilal Oswal maintains a neutral stance on Tata Motors’ future prospects. They acknowledge the operationally sound performance in Q4FY24, with EBITDA margins expanding by 30bp to 14.2%.
However, they also caution investors about looming headwinds that could impede future performance. In response, Motilal Oswal has revised their EPS estimates downward for FY25 and FY26 by 3% and 5%, respectively.
Despite these adjustments, they note that Tata Motors trades at relatively low earnings multiples.
The financial results for Tata Motors Q4 2024
Tata Motors unveiled its Q4 results for 2024 on May 10, 2024. The company reported a remarkable 222% year-on-year increase in net profit, totaling ₹17,407.18 crore. Furthermore, there was a significant uptick in consolidated revenue, rising by 13.3% to ₹1,19,986.31 crore.
It is essential to underscore that the opinions and recommendations presented here represent individual analysts or brokerage firms and not those of Mint. Investors are strongly advised to seek guidance from certified experts before making investment decisions, given the volatile nature of the market and the unique circumstances of each investor.
Should you Buy or Wait?
Rs 940 Seems to be a strong support in the short term , a fall below Rs 940 can bring down to stock price to Rs 830 levels
One can do a partial or 50% buying at the current levels and check it the stock price holds the Rs 940 support levels
If you already have the stock bought at higher levels you can keep holding to the stock
Techicall the Stock looks good for a long term buy and Hold.
