Tata Motors PV Share Price Live Updates: Stock opens 6% lower after Q2 Loss; JLR Guidance cut

Brokerage firm Motilal Oswal initiated coverage on the PV business stock with a “sell” rating and a price target of ₹312, projecting a 20% downside from current levels. The brokerage said that the US tariffs, and China luxury tax will structurally hurt JLR’s future performance.

– Underperform Rating

– Price target of ₹300

– Potential downside of 25% from current levels

– Cyberattack related disruptions could continue in Q3 and normalize only by Q4

– See multiple headwinds for JLR going ahead

– Increased competition and consumption tax in China, high discounts, and BEV transition key headwinds for JLR

– India PV business better placed but unlikely to offset JLR headwinds

Shares of Tata Motors Passenger Vehicles Ltd. (TMPVL) opened with losses of over 6% after the second quarter results.

Losses on a consolidated basis and JLR guidance cut are weighing down on the numbers.

Stock is among the top losers on the Nifty 50 index.

Shares of Tata Motors Passenger Vehicles is set to open 3% lower on Monday in response to its second quarter results.

This was the first result reported by the company after the CV business demerger.

– Global luxury auto demand is weak, China’s luxury segment shrinking, Europe struggling

– US demand stable but unable to absorb excess global capacity

– For India business, commodity cost increases could not be offset by price increases

– JLR cyber incidence-related impact of ₹2,008 crore

– JLR cuts EBIT margin guidance to 0%-2% from 5%-7%

– JLR’s cash outflow to rise up to £2.5 billion Vs earlier target of almost zero

– JLR Raw Material costs impacted by Euro exchange rates, MAJOR % RMs are Euro-based

– Weak Q2, an all-round miss

– JLR drags Q2 earnings & seen reporting weak Q3 too

– India Biz outlook in-line with ind, JLR normalcy only by Q4

– Negative free cash flow of ₹8,300 crore

– Negative free cash flow due to lower volumes on JLR cyberattack

– JLR cyberattack led to one-time loss of ₹2,008 crore

– Net adjusted net loss of ₹6,370 crore from Net profit of ₹3,056 crore last year

– Revenue down 14% to ₹72,349 crore from ₹83,656 crore year

– EBITDA loss of ₹1,404 crore from EBITDA of ₹9,914 crore last year

– Forex loss of ₹361 crore versus gain of ₹436 crore last year

This was the first result that the PV business reported after the demerger into two separate entities.

Two things stood out from the quarter, apart from the headline numbers.

Updates on all of this in the subsequent posts.

Good Morning!

Welcome to CNBC-TV18’s Live Coverage of Tata Motors PV’s share price reaction in response to its Q2 results that were reported after market hours on Friday.

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Tata Motors PV Share Price Live Updates: Stock opens 6% lower after Q2 Loss; JLR Guidance cut