Tata Technologies Q3 results today; Tata group firm to host earnings conference call at 6 pm

Recent market debutant Tata Technologies Ltd (Tata Tech) will be in focus on Thursday morning as the Tata group company is ll set to announce its maiden quarterly results today. Following its results, Tata Tech would also host earnings conference call at 6 pm. The earnings call would be attended by the senior management of the company, including CEO and MD Warren Harris and CFO Savitha Balachandran.

Tata Technologies, with its full vehicle proposition and end-to-end EV capability is a play on the electrification-led outsourcing theme, JM Financial said earlier this month.

"Tata Technologies is a pure-play ER&D services player with predominantly automotive focus (88 per cent of services revenue). Strength in traditional areas (e.g., Body engineering) and capabilities in full vehicle EV programs put it at a vantage position to benefit from the electrification trend. Its engagement with anchor clients’ (TML + JLR) EV programs and deep relationships with EV start-ups offer strong references to win clients/mine existing ones in the EV space," JM Financial said.

The brokerage said the empanelment with Airbus could drive non-auto services as well. While it did not give any estimate for the December quarter, it expected earnings per share for Tata Technologies to grow at 15 per cent compounded annually over FY23-26E.

"Importantly, we believe earnings trajectory should improve over the medium term as drag from likely ramp-down in the Vinfast account recedes. We initiate coverage with a BUY and TP of INR 1,360, valuing the stock at 60x PER," it said on January 8.

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