2 weeks ago

Tata Motors PV shares tumble 6% on 80% profit plunge

Tata Motors PV shares tumble 6% on 80% profit plunge
Tata Motors PV shares tumble 6% after net profit drops in Q1; analysts stay cautious · livemint.com

Tata Motors is a very big car-making company in India.

It also owns Jaguar and Land Rover, famous luxury car brands made in the UK.

In the three months from April to June, the company earned much less money than before — its profit fell by 80%.

One big reason was that its luxury car business, Jaguar Land Rover, had a tough time.

A fire at a supplier's factory meant fewer cars could be built.

There were also problems in places like the Middle East and China, where fewer people were buying its cars.

Because of this, Tata Motors' share price dropped by 6% in a single day.

Some money experts are worried and say you should sell the shares.

Other experts are more hopeful and say you can still buy them.

Meanwhile, the company's India business is actually doing well, selling lots of electric cars.

Key facts

Q1 net profit
₹775 crore, down 80% year-on-year from ₹3,924 crore
Q1 revenue
₹94,827 crore, up 9% year-on-year
Share price move
Fell 6% to around ₹329 on August 14
Motilal Oswal rating
'Sell' with an SoTP target price of ₹310 per share
JM Financial rating
'Add' with an SoTP target price of ₹375 per share
JLR wholesale volumes
Declined 9.2% in Q1 FY27
Domestic PV and EV volumes
Domestic volumes up 46% YoY; EV volumes up 112% YoY

Sources

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