Following the release of the Q4 2024 results on Friday of last week, there was a significant sell-off in the Tata Motors share price on Monday morning.
Within minutes of the opening bell on the stock market, the price of Tata Motors shares dropped to ₹1,005 on the NSE
Marking an intraday loss of over 9 percent on Monday. The share price also touched an intraday low of ₹947.20 per share.
Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, made the following connection between
The decline in the share price of Tata Motors and the company's Q4 results 2024, which were released on Friday of last week
Tata Motors Q4 results 2024 were muted with limited margin expansion across businesses despite higher volumes.
The company is still cautiously optimistic about all of its businesses, with the premium luxury segment
Being seen as resilient despite concerns about overall emerging demand and H1 being predicted to be weaker.
The best may yet be ahead for all businesses, even though deleveraging progress is still ongoing. This is due to factors such as JLR's declining order book
Normalizing mix, and higher customer acquisition costs, with normalizing FCF generation the flat growth outlook for the domestic CV space
The EPS for FY25E/26E is essentially unchanged (a consol. revenue/EBITDA CAGR of 7/8% over FY24-26E is factored in).
The Emkay Global expert predicted further declines in Tata Motors' share price, speculating that it might fall as much as ₹950 per share.