Tata Motors shares fell 5.5% intraday on November 10, a day after the company reported its September quarter earnings.

On November 9, Tata Motors Ltd reported a consolidated net loss of Rs 944.61 crore for the quarter that ended September (Q2FY23). A year ago (Q2FY22) net loss was Rs 4,441.57 crore.

Consolidated operating income for the reported quarter rose 29.7% year-on-year to Rs 7,9611.3 crore compared to Rs 61,378.82 crore a year earlier. EBITDA margin, a measure of corporate profits, rose 130 basis points year over year to 9.7% in the second quarter of fiscal 2023.

CLSA maintained its “outperform” rating on Tata Motors and raised its target price to Rs 491 per share. According to CNBC-TV18, Jaguar Land Rover’s India operations outperformed its Indian operations in the second quarter, while Jaguar Land Rover’s Q2FY23 EBITDA was higher than expected.

Tata Motors is making progress in all verticals – Jaguar Land Rover, CV and PV. The company is witnessing strong demand and is expected to deliver better operational efficiency with the help of aggressive launch, market positioning, product differentiation, cost savings and investment in research and development (R&D).

Sharekhan expects operating results to improve significantly in the second half of fiscal 2023, as supply constraints are expected to gradually ease, while demand from JLR and domestic operations continues to be strong.

The domestic CV and PV segments are expected to remain healthy due to new product launches and the benefit of operating leverage.

Driven by the overall strong performance, we expect the company to be profitable in FY23 with a PAT of Rs 7,068 crore, supported by strong sales growth and higher margins.

We reiterate our Buy rating on the stock with an unchanged target price (PT) of Rs 516. At 10:03 am, Tata Motors was quoted at Rs 415 on the BSE, down Rs 18 or 4.16%.