Tata Motors Q4 leaves Street with mixed feelings | Economic Times

Mumbai: Brokerages have a mixed view on Tata Motors after the company unexpectedly posted a consolidated loss of Rs 7,605 crore for the quarter ended March 31 mainly due to asset write-downs in subsidiary Jaguar Land Rover. Some brokerages raised target prices due to the rolling forward of valuations and as earnings were strong at an operating level. Shares of Tata Motors ended down 5.4 per cent at Rs 314.50 on Wednesday.CLSA, Edelweiss and HSBC have retained buy and Nomura has retained reduce. Kotak Institutional has a sell recommendation and Morgan Stanley has retained equalweight rating.82780961Analysts expect the near-term to remain challenging for its subsidiary Jaguar Land Rover due to chip shortage and also for impact on standalone operations due to the second wave of Covid-19.“CV (commercial vehicle) recovery will be impacted due to the second wave of Covid-19,” said Nomura. “Any rise in competition can impact earnings sharply. We prefer Mahindra & Mahindra and Ashok Leyland in the OEM (original equipment manufacturers) space.”HSBC said materially adverse impacts from Covid-19 and the semiconductor shortage appear to be the key near-term risks.Kotak Institutional Equities said JLR is trading at a significantly higher multiple as compared to BMW, which is not justified.