- Tata Motors has reported local sales of 90,822 units in March, a 1.6% increase from the previous year’s 89,351 units.
- Passenger vehicle sales saw a significant increase of 14% year-on-year, with 50,297 units sold.
- Commercial vehicle sales, however, dipped by 9.7% year-on-year, with 42,262 units sold.
- The company’s total sales for the 4th quarter were 265,090 units, up from 251,822 units in the same quarter of the previous year.
- Executive Director Girish Wagh expects demand for commercial vehicles to improve in the second half of the 2025 financial year.
- The company remains cautiously optimistic about domestic demand, but will be monitoring geopolitical developments, interest rates, fuel prices, and inflation.
- Managing Director Shailesh Chandra expects strong demand for passenger cars to continue, although the high base effect may keep the growth rate in single digits.
- The company’s performance has received mixed reviews from analysts, with 23 buying, 5 holding, and 4 selling.
- The comparisons to past results are based on values reported by the company’s original disclosures.
Tata Motors Ltd on Smartkarma
Smartkarma’s independent investment research network has been buzzing with analyst coverage on Tata Motors Ltd. Nimish Maheshwari, a top independent analyst, recently published a detailed analysis on the company’s demerger plan, titled “Decoding Tata Motors Demerger: The Way Ahead“. In his bullish insight, Maheshwari highlights the potential for Tata Motors to unlock value in electric vehicles and its Jaguar Land Rover unit, as well as streamline operations and enhance shareholder value in the passenger and commercial vehicle sectors.
Another bullish report on Tata Motors comes from Trung Nguyen, who goes by the username “Trung”. In his insight titled “Tata Motors – Earnings Flash – Q2 FY 2023-24 Results”, Nguyen, an analyst at Lucror Analytics, notes that the company’s Q2 results have significantly outperformed expectations. With a 32% year-on-year increase in revenue and a surge in EBITDA and automotive FCF, Tata Motors appears to be on a strong growth trajectory. However, Nguyen also highlights the transition quarter for the passenger vehicle segment.
In a more recent bullish insight, Leonard Law, CFA, of Lucror Analytics, provides a morning view on Tata Motors ADR, along with Lippo Malls Indonesia Retail Trust. In this insight, Law offers a brief market commentary, key market indicators, and a macroeconomic and corporate event calendar, along with his fundamental credit analysis and trade recommendations. Law’s outlook for Tata Motors ADR remains positive, in line with the sentiment of the other analysts on Smartkarma.
However, Law’s weekly wrap for the week of October 6, 2023, takes a bearish stance on Tata Motors. In this wrap, Law provides an overview of all the Morning Views published by the Lucror Analytics analyst team in the past week. Despite the overall bullish sentiment on Tata Motors, Law highlights the company’s inclusion in the list of most-read reports, indicating some caution among investors.
A look at Tata Motors Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Tata Motors Ltd, a leading car and commercial vehicle manufacturer, has received an overall Smart Score of 3 out of 5. This indicates a moderate outlook for the company’s future performance. The company has scored a 2 for value, 2 for dividend, 4 for growth, 2 for resilience, and an impressive 5 for momentum.
Despite its average score for value and dividend, Tata Motors Ltd has shown strong momentum in recent times, with a score of 5. This suggests that the company has been performing well in terms of stock performance and market sentiment. Additionally, with a score of 4 for growth, Tata Motors Ltd is expected to continue expanding its business and increasing its revenue in the long-term.
As a manufacturer of a wide range of vehicles, including heavy, medium, and small commercial vehicles, as well as small cars and sports utility vehicles, Tata Motors Ltd has established itself as a key player in the automotive industry. With its strong momentum and potential for growth, the company’s long-term outlook remains positive. However, investors should also consider the company’s moderate scores for value and dividend before making any investment decisions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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