Brokerages cheered Maruti Suzuki India (MSIL), whereas issuing cautious calls on Tata Motors following their Q3 performances. MSIL posted a 16 per cent leap in its consolidated internet revenue for the December 2024 quarter at ₹3,727 crore, pushed by greater gross sales, whereas the decline in income from its passenger and business car divisions dragged Tata Motors’ revenue by 22 per cent to ₹5,578 crore throughout the interval beneath evaluate.
Shares of Tata Motors closed as the key laggard amongst Nifty 50 pack on Thursday, 6.98 per cent decrease at ₹699.95, after hitting a low of ₹683.20 in early commerce. MSIL shares ended flat on the NSE at ₹12,005.
Analysts foresee MSIL to learn from a number of launch tailwinds, alongside EVs and exports development, whereas Tata Motors faces a weaker development outlook throughout its segments, resulting in divergent calls.
JM Monetary has given the very best goal value on MSIL at ₹15,100 from ₹15,250 earlier. The brokerage expects richer portfolio combine and better working leverage to help margins, going forward. CNG, UVs would drive the demand momentum within the close to time period, whereas exports stay one of many key development pillars, it stated. It added that the corporate is well-positioned to cater to altering buyer preferences with its tech-agnostic method.
International brokerage Jefferies has downgraded Tata Motors, assigning underperform score at a goal value of ₹660.
Morgan Stanley has assigned an chubby name on MSIL at a goal value of ₹14,942, whereas sustaining ‘equal weight’ on Tata Motors at ₹853.
Home brokerages
Home brokerage Emkay International has the very best goal value on Tata Motors unchanged at ₹950 with a purchase name. The brokerage expects business automobiles (CV) momentum to enhance albeit regularly, amid slower-than-expected pick-up in authorities infra/capex spends.
Nuvama Institutional Equities has retained scale back score on Tata Motors at a goal value of ₹720 from ₹750 earlier, emphasising that the corporate posted a 15 per cent year-on-year dip in Q3, lagging estimates on account of a realisation/ margin miss in JLR and the home CV division.
Nuvama retained purchase on MSIL at an unchanged goal value of ₹13,900. The brokerage said that bettering passenger automobiles (PVs) penetration, new merchandise and restoration in demand for hatchbacks are more likely to help the automaker’s gross sales development over FY24-31E. “The launch of e-Vitara mannequin and a gradual restoration in hatchback demand ought to catalyse volumes forward,” it added.
Motilal Oswal has reiterated impartial name on Tata Motors at a goal value of ₹755. It expects margin stress to persist at Jaguar Land Rover (JLR) over FY24-27E, given weak demand in key areas, rising price stress because it invests in demand technology, and EV ramp-up, which is more likely to be margin-dilutive. Goldman Sachs has additionally maintained a impartial name at a goal value of ₹800. In distinction, CLSA has an outperform score at a goal value of ₹930, whereas UBS has a promote score at a goal value of ₹760.
Motilal Oswal has reiterated purchase on MSIL at a goal value of ₹14,500, anticipating a number of launch tailwinds reminiscent of EVs, hybrid variants and an SUV. Elara Capital has reiterated accumulate at an elevated goal value of ₹14,382 from ₹13,368 earlier.
HDFC Securities Analysis has maintained purchase name on MSIL at a goal value of ₹14,750, stating that the Q3 margin missed its estimate of 12.3 per cent on account of greater bills on gross sales promotions, Dzire’s promoting, and campaigns round e-Vitara.
For Tata Motors, HDFC Securities emphasised that the JLR enterprise continues to be impacted by a difficult world macro setting (particularly in China), continued greater discounting, elevated variable advertising bills (VME), elevated guarantee prices, greater client acceptance danger for the upcoming revamped Jaguar portfolio, and a slowdown in EV gross sales globally, which might result in mistimed EV launches for the corporate. The brokerage has maintained scale back score at a goal value of ₹718.
