Not much cheer is expected from Tata Motors from its Q3 results. IIFL expects the net profit to drop 6.9% YoY to Rs. 3314.9 crores. The revenue is expected to clock Rs. 73,277 crore, a climb of 4.7% yoy and 19.5% qoq.
Tata Motors is scheduled to announce its Q3FY16 results today. Leaders in passenger and commercial vehicles, Tata Motors posted 16% increase in its global wholesales in January. Global wholesales of PVs as well as CVs were up by 14% and 16% yoy in Jan 2016.
Not much cheer is expected from Tata Motors from its Q3 results. IIFL expects the net profit to drop 6.9% YoY to Rs. 3314.9 crores. The revenue is expected to clock Rs. 73,277 crore, a climb of 4.7% yoy and 19.5% qoq.
During Q3 FY16, volumes for automobile companies recovered except for two‐wheelers where growth remained subdued. Tata Motors saw a reversal in the trend with declines for passenger cars and UVs. JLR has seen a sharp rebound in volume growth on the back of new launches. IIFL expects that the JLR business will see robust improvement on a sequential basis as benefits of operating leverage kick in.
Classifying the company as its "Top Pick", IIFL expects sales volume of Tata Motors to clock 121,390 units, registering a fall of 3.9% yoy and 3.7% qoq.
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Not much cheer is expected from Tata Motors from its Q3 results. IIFL expects the net profit to drop 6.9% YoY to Rs. 3314.9 crores. The revenue is expected to clock Rs. 73,277 crore, a climb of 4.7% yoy and 19.5% qoq.
During Q3 FY16, volumes for automobile companies recovered except for two‐wheelers where growth remained subdued. Tata Motors saw a reversal in the trend with declines for passenger cars and UVs. JLR has seen a sharp rebound in volume growth on the back of new launches. IIFL expects that the JLR business will see robust improvement on a sequential basis as benefits of operating leverage kick in.
Classifying the company as its "Top Pick", IIFL expects sales volume of Tata Motors to clock 121,390 units, registering a fall of 3.9% yoy and 3.7% qoq.
Stock View
Tata Motors Ltd is currently trading at Rs. 295.7, up by Rs. 3.85 or 1.32% from its previous closing of Rs. 291.85 on the BSE.
The scrip opened at Rs. 299 and has touched a high and low of Rs. 299.25 and Rs. 292.05 respectively. So far 7281010(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 95599.53 crore.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 594.14 on 02-Mar-2015 and a 52 week low of Rs. 279.15 on 29-Sep-2015. Last one week high and low of the scrip stood at Rs. 338.7 and Rs. 289 respectively.
The promoters holding in the company stood at 33.01 % while Institutions and Non-Institutions held 41.04 % and 25.95 % respectively.
The stock is currently trading above its 200 DMA.
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