Thu Jan 30 23:28:40 IST 2025: ## Tata Motors Shares Plunge After Disappointing Q3 Results

**Mumbai, India** – Tata Motors shares plummeted 7.37% on Thursday, closing at ₹697, after the company reported weaker-than-expected third-quarter results for fiscal year 2025. The stock hit a 52-week low of ₹684.25 during intraday trading. This significant drop comes despite a 2.7% year-on-year rise in revenue to ₹1,13,575 crore. However, net profit declined by 22.4% to ₹5,451 crore compared to ₹7,025 crore in the same period last year.

The underperformance was primarily attributed to weaker-than-anticipated results from Jaguar Land Rover (JLR) and the Indian commercial vehicle (CV) segment. Several brokerage firms revised their price targets and ratings for Tata Motors stock following the announcement.

Nuvama Research downgraded its price target from ₹750 to ₹720 while maintaining an “underweight” rating, citing lower-than-projected earnings before interest, taxes, depreciation, and amortization (EBITDA). Incred Equities also maintained an “underweight” rating with a price target of ₹746. Analysts at Motilal Oswal highlighted the impact of reduced demand and rising costs on margins.

Global brokerages also reacted, with Morgan Stanley lowering its target price to ₹853 from ₹920 (while maintaining an “equal weight” rating) and Jefferies downgrading its rating from “buy” to “underperform.” Goldman Sachs maintained a neutral rating with an ₹800 target price. MK Global analysts noted that JLR’s average selling price decline and lower-than-expected margin growth contributed to the disappointing Q3 performance.

Despite the negative market reaction, the management revised its JLR revenue estimate downwards for FY25 by 3%, prompting adjustments in EBITDA projections across several firms. Analysts now predict sluggish revenue and EBITDA growth of around 2% from FY25 to FY27, with a mere 1% CAGR anticipated for the Indian CV segment due to reduced road construction spending.

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