Tata Motors shares turn negative for 2024 after four straight days of losses

Shares of Tata Motors are down for the fourth straight session on Tuesday and this fall has meant that the stock has turned negative for the year.

Despite an upgrade from CLSA post its September quarter results, most other brokerages tracking the stock have significantly trimmed their price targets on Tata Motors along with their Earnings Per Share (EPS) estimates as well.

CLSA now has a target of ₹968 on Tata Motors, saying that it has upgraded the stock post the recent correction. Shares of Tata Motors are down 32% from its recent peak.

However, Tata Motors maintained the EBIT margin guidance for JLR of around 8.5% for the current financial year and 10% for financial year 2026.

Nomura has maintained its "buy" rating on Tata Motors but has cut down its price target on the stock to ₹900 from ₹1,303 per share. It expects the India Commercial Vehicles business to recover in the fourth quarter of the current financial year, while also expecting a JLR rebound in the second half.

The brokerage also said that JLR's performance across markets has been better than peers and that JLR maintaining its guidance is a key positive amidst concerns maintained by multiple global OEMs.

Jefferies has also maintained its "buy" rating on the stock but similar to Nomura, has slashed its price target to ₹1,000 from ₹1,330 earlier.

Tata Motors' Earnings Per Shares (EPS) estimates have been cut by Jefferies by 2% to 9% respectively for financial year 2025 - 2027.

However, UBS maintained its "sell" recommendation on the stock with a price target of ₹780. It said in its note that the quality of reported EBIT was disappointing as well, as the company had earlier revised its useful life of its ICE models, driven lower depreciation sequentially by £76 million.

UBS said that JLR's management has maintained its margin guidance but that is contingent to demand not worsening any further amidst industry profit warnings.

The Free Cash Flow guidance for JLR now stands at £1.3 billion from £1.8 billion earlier.

Out of the 36 analysts that have coverage on Tata Motors, 22 of them still have a "buy" rating on the stock, nine say "hold", while five have a "sell" recommendation.

Shares of Tata Motors are trading 2% lower on Tuesday at ₹788.6, having corrected significantly from its recent peak of ₹1,179.