Shares of Tata Motors jumped over 7% and hit a record high of Rs 949.60 on the BSE on Monday following better-than-estimated December quarter earnings and favourable views by top international brokerages including CLSA, Macquarie, and Goldman Sachs. They also revised their targets upwards.

Tata Motors reported earnings for the quarter ended December, with the consolidated net profit surging 2.4 times year-on-year (YoY) to Rs 7,025 crore. The bottomline was way higher than an ETNow poll of Rs 4,660 crore. Consolidated revenue from operations increased by 25% YoY to Rs 1.11 lakh crore.

Here’s what brokerages recommended:

CLSA: Buy | Target: Rs 1,065

CLSA has reiterated its buy view on the stock and has raised the price target to Rs 1,061 from Rs 955. The Jaguar Land Rover (JLR) segment is on a strong footing while the Q3FY24 margin beat estimates in the commercial vehicle segment. However, in the passenger vehicles segment, the EV dragged margins, while ICE margins improved, this brokerage said.

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Macquarie: Outperform | Target: Rs 1,028

Macquarie has maintained an ‘Outperform’ rating on the counter while raising the target price to Rs 1,028 from Rs 921. JLR reported improvement in margins notwithstanding a rise in VME (variable marketing expenses) cost. Domestic PV margins improved, while CV margin also improved QoQ, Macquarie said in its post-earnings stock review note. JLR margin guidance for FY24 raised to 8%+.

Goldman Sachs: Buy | Target: Rs 960

Goldman Sachs has maintained a buy view and raised the price target to Rs 960 from Rs 870. The Q3 beat owing to better than expected Range Rover realisation, improving CV mix and pricing support, Goldman said. Sanand-2 capacity eases the path for the next wave of new models and new models should collectively help the company outgrow the broader Indian car market, it said.

Nuvama: Hold | Target: Rs 960

In Nuvama’s view, there is limited upside potential for Tata Motors’ stock and a moderating volume outlook has pushed the brokerage to downgrade the counter to ‘Hold’. TTMT has rallied 25%/45% in the past three/six months, and one-year forward EV/EBITDA is 6x versus five-year median of 5x, Nuvama said.Company’s Q3FY24 EBITDA surged 59% YoY primarily due to better JLF margins on an exceptional mix and lower input costs, it said. “Factoring in better margins, we are raising FY24–26E EBITDA by 7–8%. In the near term, the JLR mix should turn adverse, employee costs shall rise in the wake of the new wage agreement, and the Red Sea issues are likely to lift freight costs,” brokerage note said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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