Tata Motors stock slipped nearly 5 per cent ahead of the auto major's Q4 earnings today. The large cap stock fell to an intraday low of Rs 369.55, falling 4.73 per cent on BSE. The share opened at Rs 383.95 against the previous close of Rs 387.90 on BSE.
Tata Motors stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 14.32 per cent in one year but lost 22.77 per cent since the beginning of this year. Market cap of the firm fell to Rs 1.24 lakh crore on BSE. Total 6.41 lakh shares changed hands amounting to a turnover of Rs 23.98 crore.
The share hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 268.50 on August 24, 2021.
YES Securities said Tata Motors is likely to post a consolidated revenue growth of 14 per cent to Rs 82,020 crore. It expects JLR revenue to rise 23 per cent on a sequential basis at 5.8 billion pounds.
"Consequently, consolidated margins are expected to contract to 9 per cent (14.4% in 4QFY21/ 9.4% in 3QFY22) led by 80 bps QoQ margins contraction at 11.2 per cent in JLR," said the brokerage.
ALSO READ: Tata's bestselling EV propels it to become India's top-selling SUV brand; here's why
Kotak Institutional Equities (KIE) expects Tata Motors to post an improvement in gross margins and EBITDA margins on a sequential basis boosted by operating leverage benefits.
The brokerage sees margins at 22 per cent in Q4, climbing 15 basis points from 21.8 per cent. EBITDA margins may rise by about 275 basis points to 5.2 per cent in Q4FY22 from 2.4 per cent in Q3 FY22.
"We estimate standalone business revenues to increase by 23 per cent quarter-on-quarter (QoQ) in 4QFY22 led by increase in volumes and marginal rise in ASPs due to price hikes and richer product mix," said the brokerage.
On a consolidated basis, the brokerage is expecting a 9.5 per cent rise in profit to Rs 142.02 crore, with an EBITDA margin of 11.9 per cent and earnings per share of 4.2 for the March 2022 quarter.
ALSO READ: 79% of EV owners use the Nexon EV as their primary vehicle: Tata Motors
The Tata Group's auto arm reported a loss of Rs 1,516 crore (attributable to shareholders) for the quarter ended December 31, 2021, as semiconductor shortages crimped the Indian automaker's ability to take advantage of the pandemic-driven demand for personal vehicles.
The firm had reported a net profit of Rs 2,906 crore a year earlier when an easing of coronavirus-related restrictions had led to a pick-up in sales. Sequentially, the automaker's loss narrowed from Rs 4,412 crore in the second quarter of this fiscal year.
Consolidated total revenue from operations declined nearly 5 per cent to Rs 72,229 crore versus Rs 756,53 crore from a year ago.