Tata Motors shares skid 8% as Q4 earnings miss estimates.
The shares of homegrown automaker Tata Motors plunged over 8% on Monday, a day after its quarterly results fell short of market expectations.
The blue-chip scrip nosedived to close at Rs. 959.8 on the BSE, down 87 points or 8.32%. On the NSE too, it tanked 8.34% to finish at Rs. 959.4 after opening lower.
Though Tata Motors’ January-March net profit more than trebled, analysts were disappointed by the revenue and EBITDA performance. Its total Q4 income grew 13% to nearly Rs. 120,000 crore.
Two major brokerages, Emkay Global and Novuma, retained their ‘Reduce’ ratings and downward revised price targets. While Emkay held its target at Rs. 950, Novuma flagged moderating growth outlooks.
Emkay said margin expansion was limited across businesses despite higher volumes, with the best results possibly behind. Novuma forecasts a more moderate 8-13% revenue/EBITDA CAGR over the next few years.
The benchmarks diverged sharply with the Sensex ending with gains near 1%. However, selling pressure persisted on Tata Motors through the session amid weak Q4 report card and brokerage caution.
Its shares have surged 15-60% in the past three to six months but trade on 1-year forward multiples above historic means, analysts pointed out.
