Wed Sep 11 06:58:25 UTC 2024: ## Tata Motors Shares Plunge on UBS “Sell” Call Despite Strong Q1 Earnings
**MUMBAI, INDIA -** Tata Motors shares experienced a significant decline on Wednesday, falling over 4% in early trade. This drop comes on the heels of a “sell” call issued by global brokerage UBS Securities, which cited a potential 20% downside for the stock.
Despite reporting a 74% increase in consolidated net profit for the June quarter, reaching ₹5,566 crore, the UBS analysts expressed concerns about the company’s future performance. UBS has set a target price of ₹825 for the stock.
Despite the negative outlook, Tata Motors had a strong first quarter, with revenue from operations showing a 5.68% growth year-over-year to ₹1,08,048 crore. The company also reported a cash flow of ₹1,200 crore, driven by improved cash profits.
However, the recent drop in share price reflects the market’s cautious sentiment, with analysts expecting a moderation in growth over the coming years.
In contrast to the bearish outlook, domestic brokerage Motilal Oswal Financial remains optimistic about Tata Motors’ future prospects. The firm believes that the company’s earnings momentum will continue, although the growth rate is expected to moderate to around 15% over the next two years.
Tata Motors continues to navigate a challenging market environment with strong Q1 performance countered by concerns about future growth prospects. It remains to be seen how the company will address these concerns and if the share price will recover in the coming weeks.
First Piper 