Tata Motors Ltd shares have entered into the correction phase after the carmaker's fourth-quarter (Q4 FY24) results missed Street estimates. On Wednesday, the stock slipped 1.81 per cent to settle at Rs 947.20. At this price, it has tanked 11.11 per cent from its one-year high of Rs 1,065.60, a level seen earlier this year on March 5.
Emkay Global said Tata Motors' Q4 earnings were muted, with limited margin expansion across businesses, despite higher volumes. Nuvama stated that the company's revenue and Ebitda missed estimates slightly due to lower-than-expected numbers in India CV and PV divisions. JLR (Jaguar Land Rover) order book fell from 1,48,000 units in December to 1,33,000 units in March, it added.
Tata Motors reported a 45.67 per cent year-on-year (YoY) rise in consolidated net profit, at Rs 17,529 crore, for the March quarter compared with Rs 12,033 crore in the same quarter last year. The consolidated sales for the quarter stood at Rs 1,19,986 crore, up 13.3 per cent, the JLR owner said. Ebitda margin for the quarter came in at 14.9 per cent, up 160 basis points (bps) YoY.
On technical setup, support on the counter could be seen at Rs 900. At the higher end, immediate resistance may be found around Rs 1,000 level.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Tata Motors has plunged around 11 per cent from its high of Rs 1,050 in the last couple of trading sessions, with a bearish gap formation on daily charts. The recent fall has led to a decisive correction on the technical parameters, which now subsides in a comfort zone. At current juncture, a plunge below Rs 945 is likely to attract further weakness towards 920-910 levels. Hence, a pragmatic view is required in the counter for now. While on the higher end, a series of resilience can be seen at the Rs 990-995 range, followed by the unfilled gap of Rs 1,008-1,030 in the near period."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has been moving within a range since the last two months with tough resistance near Rs 1,050. It has crucial support level near the Rs 940 zone, below which the bias would turn little bit weak with next support level placed near Rs 910. The decisive move above Rs 980-985 levels is required for further upside."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Support for Tata Motors' scrip will be at Rs 900. Resistance can be seen at Rs 1,050 level."
AR Ramachandran from Tips2trades said, "Tata motors stock price is bearish on daily charts with strong resistance at Rs 977. A daily close below support of Rs 935 could lead it to a lower level of Rs 894 in the near term."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 910 and resistance at Rs 1,000. A decisive close above Rs 1,000 level may trigger a further upside till Rs 1,030. The expected trading range will be between Rs 900 and Rs 1,040 for a month."
Tata Motors shares have climbed 19.82 per cent on a year-to-date (YTD) basis and 81.79 per cent in the past one year. That said, the scrip emerged as the top laggard on Nifty50 today.