Tata Motors share price slumps 5% post weak Q4 numbers; should you buy the stock? Check target prices

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Tata Motors share price fell as much as 5 per cent to hit an intraday low of Rs 95.40 apiece on BSE, a day after the company reported its highest quarterly loss in the January-March 2020 period. The company posted a consolidated net loss of Rs 9,894 crore for the quarter ended March 31, as compared to a consolidated net profit of Rs 1,108 crore in the same period of the preceding year. Tata Motors stock has, however, zoomed 33 per cent from its March low of Rs 63.60 apiece, while the stock is over 52 per cent off from its 52-week high touched in January this year. Post Q4 earnings, research and brokerage firms are bullish on the stock with an upside of up to 22 per cent. “Tata Motors’ 4QFY20 performance fully reflects the impact of COVID-19 in JLR’s key market, China. This, coupled with the initial impact in other geographies and an all-round miss in India, led to sharp miss in operating performance,” said Motilal Oswal Institutional Equities in its latest research report.

From current levels, Tata Motors share price will have to jump 22 per cent to reach the target price of Rs 122 per share predicted by Motilal Oswal Institutional Equities. JLR’s operating performance was adversely impacted by lower sales from China and higher VME (variable marketing expenses), which hurt realizations, the report added. Tata Motors informed that it is seeing an encouraging recovery in China with all its dealers now open, and with sales of