Tata Motors Shares Down 2% After Net Profit Falls 51% In Q4, Should You Buy, Hold Or Sell?

SOURCE : NEW18 NEWS

Last Updated:May 14, 2025, 09:23 IST

Tata Motors Share Price Target: Among 34 analysts covering Tata Motors, 19 recommend “Buy”, nine suggest “Hold”, and six advise “Sell”.

Tata Motors Share Price, Tata Motors Share Price Target: Tata Motors Limited’s shares opened 1.15 per cent lower to Rs 699.75 apiece on BSE after the automaker’s net profit fell 51 per cent Year-on-Year to Rs 8,556 crore in Q4 FY25, against Rs 17,528 crore in Q4 FY24. Meanwhile, the automaker’s revenue growth remained flat to Rs 119,502 crore in Q4 FY25, against Rs 119,033 crore in Q4 FY24. However, the net profit sill beat the street estimates.

The scrip was trading at Rs 692.75 apiece with a drop of 2 per cent at the time of writing this report.

For FY25, TML reported record revenues of Rs 439.7K Cr with EBITDA at Rs 57.6K Cr, highest ever PBT(bei) of Rs 34.3K Cr(+Rs 5.0K Cr over the previous year) and net profit of Rs 28.1K Cr. TML group turned net auto cash positive in FY25 with net cash balance of Rs 1.0K Cr.

Lower depreciation and amortization at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage.

The management of Tata Motors Limited expects tariffs and related geo-political actions making the operating environment uncertain and challenging. The global premium luxury segment and Indian domestic markets are expected to weather this relatively better.

Tata Motors Share Price Target 2025

Brokerage opinions on Tata Motors are divided, with CLSA maintaining an “Outperform” rating and a price target of Rs 805, suggesting a potential upside of 14% from Wednesday’s closing price. CLSA noted that while Jaguar Land Rover (JLR) remains cautious about demand in FY26 due to tariff concerns and macroeconomic challenges, the overall luxury passenger vehicle segment may not be significantly affected. Despite these headwinds, JLR is confident in achieving its FY26 EBIT margin guidance.

In contrast, Jefferies has rated the stock “Underperform” with a price target of Rs 630, implying an 11% downside. The brokerage flagged multiple concerns, including U.S. tariffs, intensifying competition in China, and rising customer acquisition costs. Additionally, a slowdown in the Indian commercial vehicle (CV) market and increasing competition in the electric passenger vehicle (PV) space are expected to weigh on performance. As a result, Jefferies has cut Tata Motors’ FY26 and FY27 EBITDA estimates by 8% and 9%, respectively, while slightly raising its EPS forecasts by 3–4%.

Citi has suspended its rating on the stock but highlighted that while Tata Motors’ management remains optimistic about the India CV business, the PV segment—especially electric vehicles—may face near-term challenges.

Kotak Institutional Equities has downgraded Tata Motors to “Sell” from “Reduce” and assigned a price target of Rs 600, indicating a potential 15% downside. It echoed concerns about JLR’s exposure to weak demand in China and tariff risks in the U.S., despite the unit turning net cash positive in FY25. Kotak also flagged market share losses in both the CV and PV segments in India as key risks. It has cut its consolidated EBITDA estimates for Tata Motors by 4–10% over FY25–FY27.

Among 34 analysts covering Tata Motors, 19 recommend “Buy”, nine suggest “Hold”, and six advise “Sell”, highlighting a split in sentiment as the company navigates both global and domestic headwinds.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

First Published:

May 14, 2025, 09:23 IST