Tata Motors Share Price Plummets 9% Post-Q4 Results: Is it Time to Buy

Tata Motors' share price witnessed a significant decline following the Q4 results announcement, driven by concerns about margin expansion and future performance. Analysts remain cautious about the stock's outlook, citing potential headwinds, despite the strong financial results posted for FY24.

Tata Motors Share Price Performance Post-Q4 Results:

• After the announcement of Q4 results for 2024, Tata Motors' share price experienced significant selling pressure.

• On Monday, the share price opened lower at ₹1,005 per share on NSE and quickly fell to an intraday low of ₹947.20 per share, marking a loss of over 9%.

Triggers for the Share Price Decline:

• Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, attributed the drop in Tata Motors' share price to the muted Q4 results.

• Despite higher volumes, the company saw limited margin expansion across its businesses.

• Concerns regarding weaker performance in H1 and emerging demand issues contributed to the cautious optimism observed across Tata Motors' businesses.

Analyst Insights on Share Price Outlook:

• Emkay Global Financial Services expects Tata Motors' share price to decline further to around ₹950 per share.

• Motilal Oswal maintains a 'neutral' view on Tata Motors' share price outlook.

• The company's 4QFY24 results were operationally in line with estimates, with EBITDA margin expanding to 14.2%.

• Despite strong performance in FY24, headwinds ahead could impact Tata Motors' future performance.

Motilal Oswal's Assessment and Recommendations:

• Motilal Oswal report indicates a lowering of EPS estimates by 3%/5% for FY25/FY26 due to potential headwinds.

• Tata Motors' stock trades at 18x/15.6x FY25E/FY26E consolidated EPS and 6.2x/5.3x EV/EBITDA.

• They reiterate a 'neutral' stance with a FY26E SOTP-based TP of ₹955.

Tata Motors Q4 Results for 2024:

• Tata Motors disclosed its March quarter financial results on May 10, 2024.

• The company reported a remarkable 222% year-on-year increase in net profit, amounting to ₹17,407.18 crore.

• Consolidated revenue also surged by 13.3% to reach ₹1,19,986.31 crore.