Q4 Caution for Tata Motors
- 13th May 2025
Aaj Ka Bazaar
Wall Street indices surged on Monday after the US and China reached an agreement to temporarily reduce tariffs, raising hopes for a de-escalation in the global trade war. The S&P 500 and Dow Jones Industrial Average closed at their highest levels since March, gaining 184.28 points to end at 5,844.19, and 1,160.72 points to finish at 42,410.10, respectively. Meanwhile, the Nasdaq Composite jumped 779.43 points to close at 18,708.34 its highest level since February 28. Following the positive momentum from US markets, Asian markets also rallied on optimism surrounding the US-China trade truce. Indian benchmark indices are expected to open on a positive note, driven by the easing of global trade tensions and the understanding to cease hostilities between India and Pakistan. On the stock-specific front, HFCL has secured a purchase order worth Rs. 157 crores from Tera Software Ltd., a consortium partner of ITI Limited, for the supply of various types of optical fiber cables under the BharatNet Phase III project.
Markets Around Us
BSE Sensex – 82,090.97 (-0.50%)
Nifty 50 – 24,806.25 (-0.48%)
Bank Nifty – 55,169.20 (-0.39%)
Dow Jones – 42,326.81 (-0.20%)
Nasdaq – 18,708.34 (4.35%)
FTSE – 8,604.98 (0.58%)
Nikkei 225 – 38,292.73 (1.72%)
Hang Seng – 23,155.62 (-1.67%)
Sector: Automobiles
Tata Motors Q4 Profit likely Halves
Tata Motors will release its Q4 FY25 results on May 13. Analysts expect almost flat revenue growth at ₹1.21 lakh crore, up just 1.1% year-on-year, while net profit may drop sharply by around 58% to ₹7,361 crore due to lower volumes and weak performance in the JLR and passenger vehicle businesses. Commercial vehicle revenue may fall 5%, and passenger vehicles may see a high single-digit decline. JLR’s revenue is expected to dip 3% YoY, though margins may improve slightly. Overall margins are likely to contract by 160 basis points due to poor operating leverage. Investors will be keen on JLR’s FY26 outlook, cost control measures, new model updates, and discounting trends. In India, Tata’s guidance for CV and PV volume growth, market share targets, and EV plans will be closely tracked
Why it Matters:
Tata Motors’ Q4 results matter because a sharp decline in profit, despite stable revenues, could shake investor confidence—especially after a 16% rally in the stock last month. The weak performance in both JLR and domestic vehicle segments raises concerns about demand and cost pressures. Moreover, management commentary on FY26 plans, cost control, new model launches, and the EV roadmap will be crucial in determining the company’s growth outlook and influencing future stock movements.
NIFTY 50 GAINERS
BEL – 333.20 (3.22%)
DRREDDY – 1233.10 (3.14%)
SUNPHARMA– 1718.10 (1.89%)
NIFTY 50 LOSERS
INFY – 1592.40 (-2.12%)
HINDALCO – 640.39 (-1.79%)
ETERNAL – 235.29 (-1.76)
Sector : Pharmaceuticals
Cipla Q4 Earnings likely to rebound
Cipla is set to announce its Q4 FY25 results on May 14, and analysts expect a strong performance driven by steady growth in the US market and a recovery in Indian sales. Revenue is likely to rise 18.6% YoY to ₹6,230 crore, with net profit at ₹860 crore and EBITDA margins improving to 24.5% from 20.2%. Growth is supported by new drug launches in North America, stable sales of respiratory products, and solid performance in South Africa. US sales are expected to touch $235 million, helped by products like gRevlimid, Brovana, and Lanreotide. While some margin pressure may show up due to a high base in Q3, the outlook for FY26 remains positive. Investors should watch for updates on regulatory issues, USFDA inspections, and the company’s plans for complex generics and inhalation therapies. Cipla’s strong product mix, global footprint, and upcoming launches make it one to watch this earnings season.
Why it Matters:
Cipla’s strong Q4 performance highlights its ability to grow in key global markets like the US while bouncing back in India. Improved margins and new product launches signal healthy business fundamentals. Regulatory clarity and future launch plans will guide investor confidence and stock direction.
Around the World
Asian markets mostly moved higher on Tuesday after the U.S. and China announced a major cut in trade tariffs, signaling a clear deescalation in their long-standing trade war. Japan and Australia led the gains, while Chinese stocks lagged due to profit-booking and doubts over fresh stimulus from Beijing. Analysts believe reduced trade tension may delay further fiscal support from China. Meanwhile, investors are watching out for U.S. inflation data, which could affect global sentiment. In India, stocks are likely to open slightly lower after a strong 4% rally in the previous session, which was driven by relief over a U.S.-brokered ceasefire with Pakistan. However, local markets may take a breather now, awaiting key consumer inflation data expected to show further cooling in April. Overall, the tone in Asia is optimistic, but some markets like China and India may see limited upside in the short term due to recent gains and pending data cues.
Option Traders Corner
Max Pain
Nifty 50 – 24850
Bank Nifty – 55000
Nifty 50 – 24749 (Pivot)
Support – 24,554, 24,183, 23,988
Resistance – 25,120, 25,315, 25,686
Bank Nifty – 55135 (Pivot)
Support – 54,805, 54,227, 53,896
Resistance – 55,713, 56,043, 56,621
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