Tata Technologies shares hit 52-week low, oversold on charts; what's next?
Tata Technologies Stock Price: The Tata Group firm reported a 1% fall in its Q3 consolidated net profit. Profit declined to Rs 169 crore in the last quarter against Rs 170 crore posted in the year-ago period.
- Jan 22, 2025,
- Updated Jan 22, 2025 6:45 PM IST
Shares of Tata Technologies Ltd slipped over 3% to a fresh 52 week low in early deals on Wednesday after the firm reported its Q3 earnings. The Tata Group stock fell 3.33% to Rs 789 on Wednesday against the previous close of Rs 816.75 on BSE. Total 0.47 lakh shares of the firm changed hands amounting to a turnover of Rs 3.77 crore. Market cap of the firm declined to Rs 32,512 crore on BSE.
Tata Technologies stock has a beta of 0.7, indicating very low volatility in a year.
In terms of technicals, the relative strength index (RSI) of Tata Technologies stands at 29.7, signaling it's trading in the oversold zone.
The Tata Group firm reported a 1% fall in its Q3 consolidated net profit. Profit declined to Rs 169 crore in the last quarter against Rs 170 crore posted in the year-ago period. On a sequential basis, net profit rose 7% as against Rs 157 crore posted in Q2FY25.
Revenue climbed 2% to Rs 1,317 crore against Rs 1,289 crore in the corresponding quarter of the previous financial year. Revenue rose 1.6% from Rs 1,296 crore in the July-September quarter.
Operating revenue rose 2.2% to Rs 1,317.4 crore, and 1.6% QoQ. The services segment revenue stood at Rs 1,013 crore, an increase of 1.2% YoY and 0.8% QoQ.
JM Financial has assigned a buy call to the stock with an upside of 40.8%. It has given a price target of Rs 1,150 against the previous Rs 1120.
"We have lowered FY26/27E USD revenues on weaker demand and adverse cross-currency. But weaker INR, better operational efficiency (hence margins) and JV-contribution (direct + deferred revenues) aide 1-3% EPS upgrade," said the brokerage.
"Tata Tech seems well positioned to capture demand in varying scenarios, limiting significant fluctuations to its performance. Besides, regulatory clarity could help revive spend cycles. Demand could, per the management, bottom in two quarters’ time. Our 1-3% EPS upgrade – admittedly our first since initiation – suggests earnings have likely bottomed now. At 34x FY27E EPS, lowest since listing, stock too has bottomed - probably as of yesterday" added JM Financial.
Brokerage Citi has lowered its price target to Rs 765 from Rs 835, citing a reduced multiple of 38x (compared to 40x previously) due to the uncertainties facing the automotive sector.It maintained its sell call on the stock.
Citi revised its earnings estimates for FY25-FY27 lowering by nearly 2-4% on challenges in Tata Technologies' key automotive vertical. lowered its target price for the stock to Rs 765 from Rs 835, citing a reduced multiple of 38x (compared to 40x previously) due to the uncertainties facing the automotive sector.
The company has missed revenue expectations, although margins remain largely in line with projections, said the brokerage.
Shares of Tata Technologies Ltd slipped over 3% to a fresh 52 week low in early deals on Wednesday after the firm reported its Q3 earnings. The Tata Group stock fell 3.33% to Rs 789 on Wednesday against the previous close of Rs 816.75 on BSE. Total 0.47 lakh shares of the firm changed hands amounting to a turnover of Rs 3.77 crore. Market cap of the firm declined to Rs 32,512 crore on BSE.
Tata Technologies stock has a beta of 0.7, indicating very low volatility in a year.
In terms of technicals, the relative strength index (RSI) of Tata Technologies stands at 29.7, signaling it's trading in the oversold zone.
The Tata Group firm reported a 1% fall in its Q3 consolidated net profit. Profit declined to Rs 169 crore in the last quarter against Rs 170 crore posted in the year-ago period. On a sequential basis, net profit rose 7% as against Rs 157 crore posted in Q2FY25.
Revenue climbed 2% to Rs 1,317 crore against Rs 1,289 crore in the corresponding quarter of the previous financial year. Revenue rose 1.6% from Rs 1,296 crore in the July-September quarter.
Operating revenue rose 2.2% to Rs 1,317.4 crore, and 1.6% QoQ. The services segment revenue stood at Rs 1,013 crore, an increase of 1.2% YoY and 0.8% QoQ.
JM Financial has assigned a buy call to the stock with an upside of 40.8%. It has given a price target of Rs 1,150 against the previous Rs 1120.
"We have lowered FY26/27E USD revenues on weaker demand and adverse cross-currency. But weaker INR, better operational efficiency (hence margins) and JV-contribution (direct + deferred revenues) aide 1-3% EPS upgrade," said the brokerage.
"Tata Tech seems well positioned to capture demand in varying scenarios, limiting significant fluctuations to its performance. Besides, regulatory clarity could help revive spend cycles. Demand could, per the management, bottom in two quarters’ time. Our 1-3% EPS upgrade – admittedly our first since initiation – suggests earnings have likely bottomed now. At 34x FY27E EPS, lowest since listing, stock too has bottomed - probably as of yesterday" added JM Financial.
Brokerage Citi has lowered its price target to Rs 765 from Rs 835, citing a reduced multiple of 38x (compared to 40x previously) due to the uncertainties facing the automotive sector.It maintained its sell call on the stock.
Citi revised its earnings estimates for FY25-FY27 lowering by nearly 2-4% on challenges in Tata Technologies' key automotive vertical. lowered its target price for the stock to Rs 765 from Rs 835, citing a reduced multiple of 38x (compared to 40x previously) due to the uncertainties facing the automotive sector.
The company has missed revenue expectations, although margins remain largely in line with projections, said the brokerage.