Tata Motors Faces 9% Share Price Drop Post Q4 Results 2024: Analysts Predict Downsides Ahead

Tata Motors witnessed a significant 9% decrease in its share price following the announcement of its Q4 Results for 2024. Chirag Jain, a Senior Research Analyst at Emkay Global Financial Services, linked this market reaction to the company’s latest financial performance.

Emkay Global Financial Services expressed a cautionary outlook on Tata Motors, indicating that the share price might drop further, possibly reaching Rs 950 apiece. Similarly, analysts at Motilal Oswal highlighted that Tata Motors could face headwinds ahead, leading to a moderate growth outlook for the fiscal year 2025.

The recent Q4 results showed that Tata Motors had a 222% YoY increase in consolidated net profit, amounting to Rs 17,407 crore. Despite this, the company missed Street estimates on revenue and Ebitda fronts, causing market concerns.

After the Q4 results, Tata Motors’ share price fell by over 9%, settling at Rs 950.30. This translated to a market capitalization of more than 3.15 lakh crore for the day. Following this drop, various financial institutions such as Kotak Institutional Equities, Motilal Oswal, Nuvama Institutional Equities, and JM Financial revised their outlooks on Tata Motors.

Kotak Institutional Equities maintained an ‘add’ rating with a fair value of Rs 1,100 for Tata Motors, highlighting steady performance in FY24. However, Motilal Oswal downgraded the stock to ‘neutral’ amidst concerns about JLR margins and the weak India business outlook.

While JM Financial expressed optimism through a ‘buy’ rating with a target price of Rs 1,200, global brokerage firms like Nomura, J.P. Morgan, Jefferies, and Morgan Stanley adopted differing stances on Tata Motors’ stock, balancing optimism with caution.