Tata Motors share plunges 6% on CLSA downgrade, target cut; details here

Tata Motors share price: Automobile giant Tata Motors shares were under pressure on the last trading day of the week, i.e. Friday, April 4, 2025, as the scrip tanked up to 6.24 per cent to hit an intraday low of ₹613.20, nearing its 52-week low of Rs 606.20 per share.

 

Notably, the Tata Motor shares have corrected 44.52 per cent from its 52-week high of Rs 1,179.05, hit on July 30, 2024.

 

The downturn was primarily triggered by CLSA's decision to downgrade Tata Motors from 'High Conviction Outperform' to 'Outperform' and reduce its target price from ₹930 to ₹765. The brokerage reportedly expressed concerns that 25 per cent US tariffs on auto imports and potential cuts in Jaguar Land Rover (JLR) models could lead to a 14 per cent year-on-year (Y-o-Y) decrease in JLR volumes for FY26. 

 

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Additionally, CLSA anticipates a decline in Ebit margin to 7 per cent in FY26/27, down from 9 per cent in FY25.  ALSO READ | KEY REASONS WHY STOCK MARKET IS FALLING TODAY?

 

Earlier this week, Tata Motors revealed its auto sales figures. The company reported total domestic sales of 90,500 units, a slight decrease from 90,822 units in March 2024. For Q4FY25, domestic sales dropped 5 per cent Y-o-Y to 245,891 units, from 259,932 units. Overall, FY25 domestic sales decreased 4 per cent to 912,155 units, compared to 949,015 units in FY24.

 

Looking ahead to FY26, the company anticipates sustained growth despite global headwinds. “Demand is expected to rise, driven by higher fleet utilisation, financial support from rate cuts, lower crude oil prices, and a renewed focus on large-scale infrastructure projects. At the same time, we remain mindful of the potential impact of new regulations mandating truck cabin air conditioning on vehicle prices. We will continue to closely monitor government infrastructure spending and growth across key end-use segments,” said Girish Wagh, executive director, Tata Motors.

 

Tata Motors Q3 results

 

Tata Motors reported a 22.4 per cent Y-o-Y decline in net profit, which fell to Rs 5,451 crore for the third quarter of FY25 (Q3FY25). The decline was on the back of a modest revenue growth of 2.7 per cent at ₹1,13,575 crore.  ALSO READ | RIL, ONGC, Oil India slips up to 7% as crude oil slips below $70/barrel

 

However, on a sequential basis, the company showed strong improvement, with net profit surging by 63 per cent and revenue rising 12 per cent. The growth is attributed to the recent price hikes on commercial and electric vehicles, implemented to mitigate the impact of inflation. READ MORE

 

About Tata Motors 

 

Tata Motors, a part of the Tata Group, is a global automobile manufacturer. It offers a wide range of vehicles, including cars, utility vehicles, trucks, buses, and defence vehicles, and has a strong presence both in India and internationally. Some of its renowned cars include Curvv, Nexon, and Punch among others.

 

The market capitalisation of Tata Motors is Rs 2,27,709.83 crore, according to BSE.

 

At 12:10 PM, Tata Motors share was trading 5.43 per cent lower at Rs 618.55. In comparison, BSE Sensex was trading 1 per cent lower at 75,534.54 levels.