Revenue from operations were reported of Rs 71935 crore for the first quarter of the FY 2022-23 which is an 8.3 percent rise in comparison with the first quarter of the previous year.

The company reported a Net Loss of Rs 5007 crore for the earnings results of the first quarter which is a loss that has widened by 12.5 percent compared to the first quarter of the previous year. Let us look at the Profit & Loss figures as shown on Screener:

Profit & Loss data of Tata Motors Ltd from Screener

As we observe the data, the company has been clearly suffering tremendous losses for the past 4 years and it continues this year. It appears that the company is taking a lot of advantage of depreciation which might be the main reason behind reporting losses. However, there is frequent news which tells us that the Jaguar and Land Rover segment has been performing poorly or this segment itself is responsible for most of the losses incurred by the company. This is a very poor portfolio stock and investors should plan for an exit as the stock has not corrected with respect to the Profit & Loss balance sheet.

The stock price fell sharply and the stock was down 3.8% in early trading session on 28th July 2022.
The stock price rose over the course of the day as the market was generally bullish and remains flat for the rest of the day. Multiple brokerage firms have set the target in the range of 590-540. This seems to be a possible target for Tata Motors as it comes into the distribution zone and the price was stagnant in that range during the months October 2021 to February 2022. Price had taken heavy support at the 38.2% retracement level and seems to be holding the 23.6% retracement level very well for now.

Tata Motors might prove to be a good pick for a swing trade but to hold it as a Portfolio stock is not ideal.

Tata Motors Weekly Candlestick Chart

MFI is 53 on weekly chart on 28th July 2022. The price set by brokerage firms might be attainable considering the bullish momentum of our Indian Stock Market.

Leave a Reply