Tata Technologies shares trade steady even as Goldman Sachs maintains 'sell' with a Rs 550/ share target

Tata Technologies share price, Tata Tech share price: Shares of Tata Technologies will be in focus in Monday's session (April 28, 2025) after the Tata group's global engineering services company reported its March quarter results for the fiscal year ending 2024-25 on Friday.

Overall, the Tata Group company posted a weak Q4 performance with consolidated revenue declining over 2 per cent sequentially from Rs 1,317 crore in the December quarter to Rs 1,286 crore in the quarter ended March 31, 2025.

On the operational front, EBIT or earnings before interest and taxes (EBIT) was steady during the reporting quarter at Rs 202.8 crore in comparison to Rs 203.5 crore in the earlier quarter. EBIT margin, however, increased to 15.8 per cent, marking a 30 basis point rise sequentially. Tata Technologies' margin in the previous quarter stood at 15.5 per cent.

Furthermore, net profit grew 12 per cent sequentially to Rs 188.87 crore during the review quarter given the increase in other income. In the previous quarter, net profit was at Rs 168.64 crore.

Global brokerage JP Morgan has continued with its 'underweight' rating on the stock with the target at Rs 630 per share. As per the brokerage, the company reported a mixed set of earnings for the March quarter with revenue below estimates, but margins remained in line.

Meanwhile, another foreign brokerage, Goldman Sachs continued with its 'sell' stance on the counter with the target pegged at Rs 550, implying 21 per cent potential downside.

The brokerage held that Tata Technologies reported in-line Q4 numbers with profitability beat driven by higher other income due to higher FX/investment gains/interest income. Furthermore, the brokerage highlighted that the company's management indicated positive conversations with clients in 4Q around potential pickup in Auto ER&D spending starting 1QFY26.

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