Tata Motors PV Share Price Slides As Brokerages Largely Bearish On Q2 Miss Amid Multiple Headwinds

Shares of Tata Motors Passenger Vehicles Ltd. saw a downwards trend in trading on Monday, as brokerages remained largely underwhelmed by the company's second quarter earnings.

The recently demerged company posted a loss of Rs 3,838 crore, after adjusting for a one-time gain of Rs 82,616 crore on disposal of discontinued operations. The earnings before interest, taxes, depreciation and amortisation loss came in at Rs 1,043 crore.

The revenue, however, has fallen 13.5% for the quarter at Rs 72,349 crore compared to Rs 83,656 crore in the previous year.

JPMorgan maintains a 'neutral' rating with a target price of Rs 385. It noted that Q2 was a weaker-than-expected quarter for the company, and said the guidance cut appears realistic. While margin delivery in the India PV business was better than expected, the extent of margin decline at Tata Motors was viewed as a negative.

CLSA, meanwhile, maintains an 'outperform' rating with a target price of Rs 526.7. The brokerage flagged that the cyberattack has led to a negative free cash flow outlook of £2 billion in FY26. CLSA expects the GST cut to boost growth for small-to-mid SUVs.

Jefferies continues to maintain an 'underperform' rating with a target price of Rs 300. It said cyberattack-related disruptions have continued into this quarter but should normalise by the next. The brokerage sees multiple headwinds, including increased competition, China’s consumption tax, high discounts, and the BEV transition. It added that while India PV is better placed, it is unlikely to offset the drag for Tata Motors.

The scrip fell as much as 7.21% to Rs 363 apiece, paring losses to trade 3.91% lower at Rs 375.90 apiece, as of 10:15 a.m. This compares to a 0.15% advance in the NSE Nifty 50 Index.

It has fallen 18.74% on a year-to-date basis, and 19.61% in the last 12 months. The relative strength index was at 28.80.

Out of 34 analysts tracking the company, 12 maintain a 'buy' rating, 13 recommend a 'hold,' and nine suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 14.9%.