Tata Motors shared 42% accident with investor money with peak wipes at Rs 1.8 lakh crore. Stock market news

Share of Tata motorsA major global automobile manufacturer, maintaining a stable downward spiral in recent weeks, is tumbling at the levels not seen in several months. Between March 2023 and July 2024, a consecutive record -breaking stock, now becoming less attractive for investors, has declined for six consecutive months.

Sales pressure has increased in the current month, the stock is at a 14 -month low 667 in trade on Wednesday, February 12, 4.45% declined so far. Since an all -time high is reaching high On 1,176 July 2024, Stock improved 42%.

This significant decline has caused massive damage to retail investors, who staked 21.9% stake in the company at the end of the December quarter. Improvement has also erased 1.8 lakh crores in market capitalization 4.32 lakh crores for current level 2.52 lakh crores.

The company’s recent December quarter results also came into estimates below, causing more sales in stock. Weak Jaguar and Land Rover (JLR) demonstrations, sales of commercial vehicles, economic challenges in European markets and weak demand in China have all affected the company’s performance in Q3Fy25.

Company Q3 FY25 declined by 22.5% in net profit 5,578 crores From 7,415 crore, while revenue increased by 2.7% 1,13,575 crores. In Q3 FY25, JLR’s ebit margin improved YOY by 9%, but analysts noted that most of this improvement was inspired by a decrease in depreciation.

Given the challenges in the major markets, the company has reduced FY25e JLR revenue guidance to £ 30 billion before £ 29 billion and maintained guidance at 8.5%on Ebit margin.

In addition, the margin in India’s CV and passenger vehicles (PV) businesses was promoted by PLI Educational, which assisted the margin by 130 basis points and 120 basis points for these sections, respectively.

Native brokerage firm Motilal Oswal hopes that there will be a margin pressure to stay on JLR over 27e due to weak demand in major areas.Increasing cost pressure from investment in demand production, and an EV ramp-up, which is likely to margin-leave. Even in India, both CV and PV are seeing a restraint in business demand, noted.

Motilal Oswal trimmed its ebitda estimates up to 3% and fY25 and fY26 respectively, factoring in JLR weakness, while maintaining ‘neutral’ ratings on stock with target price. 775 Apis. Meanwhile, Jefferies India, after maintaining a ‘buy’ rating for 3.5 years, put Tata Motors down to ‘underperform’ and reduced its target price. After the company’s Q3Fy25 numbers, 660 Apties recalled their estimates.

Analysts expect recovery in luxury car market

Global luxury car volumes in 9mcy24 declined by 3% YOY, which is inspired by a fall of 14% YOY in China and a decline in 1% YOY in Europe, mainly due to the recession pressure in Germany and France. However, it was partially offset by 1% yoy growth in North America.

While most luxury OEM revised its volume guidance downwards, mainly due to weakness in the Chinese luxury market, domestic brokerage firm LKP securities hopes that including passenger cars in China, more than H1 Cy25E, interventions from Chinese government A gap recovery for luxury goods supported by. And Central Bank.

Similarly, brokerage estimates a revival in luxury sales in Europe, which is inspired by the rate cut by the European Central Bank (ECB). It also hopes that luxury cars will remain in North America, which remained flexible in 9mcy24 despite weakness in other developed markets.

Rejuvenation, The views and recommendations given in this article are of individual analysts. They do not represent the ideas of mint. We recommend investors to investigate with certified experts before taking any investment decisions.