Shares of homegrown auto major Tata Motors were trading higher ahead of the firm's Q3 earnings set to be announced today. The stock has gained 5.33% in the last four days. The large cap stock touched an intraday high of Rs 507 , rising 1.93% against the previous close of Rs 497.40 on BSE. Tata Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 5.16% in the last four days.
Tata Motors share has gained 92% in one year and risen 4.54% since the beginning of this year. . Total 6.09 lakh shares of the firm changed hands amounting to a turnover of Rs 30.59 crore on BSE.
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The stock hit a 52-week high of Rs 536.50 on November 17, 2020 and a 52-week low of Rs 255.55 on February 1, 2021.
According to reports, the firm is likely to post a loss of over Rs 2,200 crore in Q3 as chip shortage issue affected Jaguar Land Rover business, against profit of Rs 2,906.5 crore in the corresponding period last fiscal and a loss of Rs 4,441.6 crore in September 2021 quarter.
"We expect JLR revenues (ex-China JV) to decline by 25 percent YoY in Q3FY22," said Kotak Institutional Equities.
The brokerage sees EBITDA margin to rise 210 bps QoQ to 9.4 percent due to operating leverage benefit and cost-mitigation measures. "As a result, we expect JLR EBIT margin to come in at negative 1.2 percent in Q3FY22."
Overall, "We expect EBITDA margin to improve to 4.1 percent in Q3FY22 from 2.2 percent in Q2FY22 led by (1) operating leverage benefits and (2) cost mitigation, partly offset by raw material headwinds," said Kotak.
Prabhudas Lilladher remained positive on Tata Motors given its (1) assertive stance on electric vehicle ecosystem, (2) the passenger vehicle business with its SUV focused approach and new product pipeline is set to gain market share and (3) commercial vehicle benefitting from cyclical upturn.
The Tata Group firm reported a widening of consolidated net loss to Rs 4,415.54 crore in Q2 due to higher expenses and lower sales of British arm JLR due to the shortage of semiconductors.
The company reported consolidated net loss of Rs 307.26 crore in the corresponding period of last fiscal. Revenue from operations stood at Rs 61,378.82 crore against Rs 53,530 crore in the year-ago quarter.