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Tata Motors shares decline 6% after Q4 results miss estimates

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The share price of Tata Motors fell 6 percent on Wednesday after the firm's March quarter results missed estimates.

Tata Motors shares decline 6% after Q4 results miss estimates
The share price of Tata Motors fell 6 percent on Wednesday after the firm's March quarter results missed estimates. The firm reported a narrowed net loss of Rs 7,585 crore for the quarter ended March 31.
A CNBC-TV18 poll had predicted a profit of Rs 2,721 crore for the quarter under review.
The stock fell as much as 6 percent to its day's low of Rs 312.15 per share.
The auto major's total income in the fourth quarter stood at Rs 89,319 crore. It was at Rs 63,057 crore in the year-ago quarter.
The company's British arm Jaguar Land Rover (JLR) reported a pre-tax loss of 952 million pounds for the quarter owing to the 1.5 billion pounds of exceptional charges. Despite the loss, JLR clocked a 20.5 percent increase in revenue at 6.5 billion pounds during the quarter led by China and the new Defender model.
"While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semi-conductor shortages worldwide," said Tata Motors which expects Q1FY22 to be relatively weak.
For the entire 2020-21 fiscal, Tata Motors reported a consolidated net loss of Rs 13,395 crore. It had posted a net loss of Rs 11,975 crore in 2019-20. Its total income stood at Rs 2,52,438 crore for the last financial year as against Rs 2,64,041 crore in FY20.
Brokerage houses have mixed views on the stock. While Nomura and Goldman Sachs are bearish, Citi and CLSA have 'buy' calls.
Nomura said that the debt reduction is positive, but the lack of EVs is a long-term concern for JLR.
Citi said that while the domestic business reported a strong Q4, JLR performance was slightly weak. It added that there are near-term headwinds for both the businesses.
As per CLSA, the free cash flow (FCF) generation at JLR and India continues to surprise positively. "The management expects strong volume and FCF to resume in H2FY22," it noted.
Kotak Institutional Equities has a 'sell' call with a target of Rs 205. The brokerage said that the JLR launches in the EV space are late compared to the competition, which may lead to a market loss for it going forward.
UBS is 'neutral' on the stock with a target of Rs 360. UBS is positive on India business, but says JLR volume expectations are high, and chip shortage is likely to impact it in H1.

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Tata Steel1,459.00 93.85 6.87
Bajaj Finserv14,590.45 625.20 4.48
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CompanyPriceChng%Chng
Hindalco458.10 41.80 10.04
Tata Steel1,458.60 93.60 6.86
Bajaj Finserv14,599.05 628.50 4.50
SBI441.55 16.05 3.77
JSW Steel748.40 26.70 3.70
CompanyPriceChng%Chng
Tata Steel1,459.00 93.85 6.87
Bajaj Finserv14,590.45 625.20 4.48
SBI441.75 16.30 3.83
HCL Tech1,007.60 24.95 2.54
Sun Pharma703.25 15.70 2.28

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