Tata Technologies shares are likely to remain under focus after JP Morgan maintained an ‘Underweight’ rating on the stock, with a target price of Rs 630 per share.
JP Morgan noted that Tata Technologies’ fourth quarter (Q4FY25) performance was mixed, with a revenue miss but margins broadly in line. Revenue declined 3.3% in constant currency terms quarter-on-quarter, falling 350 basis points below consensus estimates and 380 basis points below JP Morgan’s estimates.
However, the company’s EBIT margins expanded by 20 basis points quarter-on-quarter to 15.7%. Management also indicated a soft start to FY26 but highlighted that the BMW joint venture is ramping up ahead of schedule.
Tata Technologies Q4 results highlights:
Net profit rose 20.2% year-on-year to Rs 188.9 crore compared to Rs 157.2 crore a year ago.
Revenue declined 1.2% year-on-year to Rs 1,285.7 crore versus Rs 1,301 crore last year.
At the current market price of Rs 692.00 per share, JP Morgan’s target price of Rs 630 implies a potential downside of about 9%.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.
