Tata Motors Stock Drops Ahead 

Tata Motors Second Quarter Earnings:

Sharekhan sees Q2 profit at ₹4,807 crore, up 25% from ₹3,845 crore YoY. However, sales are expected to fall by 3.9% YoY to ₹1,01,070 crore, down from ₹1,05,128 crore YoY.

JLR owner Tata Motors Ltd is likely to report a 25-42% YoY rise in net profit for the September quarter despite flat sales. Analysts believe the commentary on high levels of passenger vehicle (PV) inventory, rising discounts, and festive demand outlook will be crucial in the upcoming results. As of now, Tata Motors shares are trading 0.97% lower at ₹811.85 on BSE.

PL Capital Expectations:

PL Capital expects Tata Motors to report a 28.4% YoY surge in adjusted net profit at ₹4,990 crore compared with ₹3,887 crore in the same quarter last year. Sales are anticipated to rise 2.9% YoY to ₹1,08,171 crore compared to ₹1,05,128 crore in the previous year. EBITDA is seen rising 8.2% to ₹14,845 crore, with a margin expansion of 67 basis points to 13.7%.

"Supply chain constraints are expected to be partially offset by lower penetration of the Jaguar portfolio, which could result in EBITDA margin expansion by 67 bps YoY," PL Capital commented.

Elara Securities Outlook:

Elara Securities projects Tata Motors' Q2 profit to rise 42% YoY, reaching ₹5,352 crore. Sales are expected to increase by 1.1%, reaching ₹1,05,128 crore. The PV segment of Tata Motors is seeing a significant improvement in model mix, lifting the average selling price (ASP) QoQ.

Sharekhan Forecast:

Sharekhan sees Q2 profit at ₹4,807 crore, up 25% YoY, with sales falling by 3.9% YoY to ₹1,01,070 crore.

BNP Paribas Concerns:

BNP Paribas has noted that lower wholesale volume at JLR may hurt Tata Motors, with the potential for negative surprises. The management commentary on high levels of PV inventory, rising discounts, and festive demand outlook will be key points to watch in 2QFY25, they stated.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of MBC. 

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