Tata Motors Share Price Soars Over 7% to Record High After Strong Q3 Results

Tata Motors share price rallied over 7% to open at a fresh 52-week high on Monday following the release of its robust Q3 financial results. The auto major reported a consolidated net profit of INR 7,025 crore, a significant 137.5% growth YoY. This impressive performance was credited to strong demand, price hikes, and a superior product mix in both the passenger and commercial vehicle segments.

The company’s Q3 revenue rose by 24.9% to INR 110,577 crore from INR 88,489 crore in the previous year. The revenue of British luxury car unit, Jaguar Land Rover (JLR), also experienced a substantial growth, reaching INR 76,665 crore from INR 58,863 crore YoY.

Global brokerage firm Jefferies raised its earnings-per-share (EPS) estimates for Tata Motors by 7-11% and reiterated its ‘Buy’ rating on the stock, setting a target price of INR 1,100 per share. Nomura, another brokerage firm, praised JLR’s margins and predicted a potential re-rating fueled by the success of electric vehicles (EVs). They maintained a ‘Buy’ call with a target price of INR 1,057 per share.

Tata Motors’ consolidated EBITDA came in slightly below Kotak Institutional Equities’ expectations, whereas JLR and domestic CV business EBITDA exceeded predictions. The domestic PV business EBITDA, however, was impacted by higher expenses due to product development towards EVs.

Despite this, Kotak Equities upgraded Tata Motors stock to ‘Add’ from ‘Reduce’ and raised the target price to INR 950 per share. Overall, analysts expect Tata Motors’ performance to remain healthy in FY2024-26, driven by steady demand, market share gain, and a strong balance sheet.

Tata Motors shares have seen a remarkable rally, surging over 11% in the past month and more than 44% in the last three months. As of now, Tata Motors shares were trading at INR 939.25 apiece on the BSE.