Buy or sell? What should investors do with Tata Motors shares post Q1 results

livemint.com:

Tata Motors announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 25, reporting a consolidated net profit of ₹3,202 crore. The company's revenue from operations surged 42 per cent to ₹102,236.08 crore in the June quarter - surpassing the ₹1 lakh crore-mark in line with Street estimates. The net auto debt reduced by ₹417,000 crore on margin improvement driven by Jaguar Land Rover (JLR) and commercial vehicles (CV) segments.

Markets will react to Tata Motor's Q1 results in tomorrow's trading session, with the auto stock expected to attract more buying interest from investors. Earlier this month, domestic brokerage firm Motilal Oswal saw a 13 per cent potential upside on Tata Motors and reiterated its a ‘buy’ rating on the stock, with a target price of ₹700. The Tata Group-company announced its June quarter results post-markets hours on Tuesday.

Ahead of Q1FY24 earnings announcement today, shares of Tata Motors settled 1.62 per cent higher at ₹639.45 apiece, after hitting a 52-week high of ₹642.50 apiece on the BSE. “FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger.

We remain confident of sustaining this momentum in the rest of the year and achieve our stated goals,'' said PB Balaji, Group Chief Financial Officer, Tata Motors. Analysts had expected strong earnings in the quarter-under-review led by improving margins and healthy sales in its British luxury arm. In the April-June quarter, JLR revenues improved by 57 per cent to £6.9 billion on strong wholesales and improved mix resulting in EBIT margins of 8.6 per cent.