Sat Feb 01 01:42:25 IST 2025: ## Tata Motors Stock Rebounds After Q3 Earnings Dip

**MUMBAI, INDIA** – Tata Motors shares experienced a partial recovery on Friday, climbing over 1% to Rs 707.40 after a significant drop the previous day. Thursday’s close of Rs 697 marked a 7.37% decline and the stock’s lowest closing price since November 28th, following disappointing Q3 earnings that fell short of analyst expectations. The weak performance was attributed to a slowdown in Jaguar Land Rover (JLR) sales, primarily due to weak demand in China and Europe, increased customer acquisition costs, and higher warranty expenses.

Despite the rebound, the outlook remains cautious. Several brokerage firms have downgraded their ratings and price targets for Tata Motors. Incred Equities maintained a “reduce” rating with a target price of Rs 661, citing tariff challenges, currency volatility, and increased competition in the Indian EV and small truck markets. While acknowledging Tata Motors’ improving Indian franchise and EV leadership, YES Securities also lowered its target price to Rs 892 from Rs 948, maintaining an “add” rating but advising caution. Jefferies downgraded the stock to “underperform,” slashing its price target to Rs 660 from Rs 930. Conversely, CLSA remains bullish, maintaining a target price of Rs 980.

Tata Motors’ Q3 results showed a 22% year-on-year drop in profit to Rs 5,451 crore, despite a 3% increase in revenue to Rs 1.13 lakh crore. The passenger vehicle segment saw a revenue dip of 4.3%, while commercial vehicle revenue fell by 8.4%. The company’s market capitalization currently stands at Rs 2.59 lakh crore. The 40% correction from its August 2024 peak has brought the forward P/BV valuation closer to its 10-year average. However, analysts remain divided on the stock’s future performance, highlighting the need for investors to carefully consider the risks and opportunities before making investment decisions.

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