Tata Motors shares surge over 7% on robust Q3 earnings; analysts recommend buying

Updated: 27 Jan 2023, 11:50 AM IST
TL;DR.

  • Over the past one week, the stock has gained 10.14%. In today's trading session, the stock hit an intra-day high of 453.40 and low of 435.15. The stock's weekly average delivery volume is 47.14%.

Tata Motors shares surge over 7% on Friday's trade

Shares of Tata Motors Ltd rose over 7 percent on Friday following robust Q3FY23 (October-December) earnings. Despite the weak show in Q2, the auto maker surprised the street with positive margins.

The consolidated total operating income for the quarter ended December stood at 88,489 crore, up 11.2 percent quarter-on-quarter (QoQ). The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q3FY23 stood at 12,280 crore with corresponding EBITDA margins at 13.9 percent, up 290 basis points QoQ.

Despite uncertainty across the globe, the company's view on demand outlook remained cautiously positive. In addition to 85,000 deliveries, the company got 95,000 new orders for Q3FY23.

According to the management, the lockdown that occurred during the quarter continued to have an impact on wholesales in China. However, it maintained its projection for the entire year, with positive earnings before interest and taxes (EBIT) margin and free cash flow anticipated in Q4FY23 on wholesales of 80,000 units or more.

Further, higher wholesales, a stronger mix, pricing, and foreign exchange gains contributed to Q3FY23's continued solid performance. The management anticipates Q4FY23 to perform better than Q3FY23 going forward.

Over the past one week, the stock has gained 10.14 percent. In today's trading session, the stock hit an intra-day high of 453.40 and low of 435.15. The stock's weekly average delivery volume is 47.14 percent.

Tata Motors

"Post its result the stock is showing strong traction even in the weak markets. Overall looks poised for strong upside and any dips should be considered a buy, 430 level is immediate support whereas 500 level immediate resistance," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

According to MintGenie poll, 30 analysts recommend 'buy' rating for the stock.

Retail investors and Indian stock markets
First Published: 27 Jan 2023, 11:50 AM IST