Tata Motors shares fall ahead of CV business Q2 earnings

Shares of Tata Motors Ltd

., the demerged Commercial Vehicles business of the consolidated entity are trading with losses of up to 4% on Thursday, November 13, ahead of their September quarter results.

This will be the first quarterly result that the CV business will be reporting as a separate entity after its demerger and subsequent listing. The PV business will be reporting its results on Friday, November 14.

The commercial vehicles entity made its stock market debut on Wednesday at ₹330 per share, which was 28% higher than the pre-open discovery price of ₹260 per share last month. This was after the passenger vehicle business began trading at ₹400 per share. The day before the demerger record date, shares of Tata Motors had ended at ₹660.75.

While Tata Motors mainly comprises of its passenger vehicles business, the CV business had contributed between 18% to 20% to the consolidated entity.

As many as 3.1 crore shares of the Commercial Vehicles entity were traded on Thursday when the stock began trading on the bourses.

"The Tata Motors CV arm reported ₹75,055 crore in revenue in FY25 and EBITDA of ₹8,856 crore, implying a margin of 11.8%. Using Ashok Leyland’s EV/EBITDA multiple of 12.9x, the fair value for Tata Motors Commercial Vehicles comes around ₹1.14 lakh crore, or roughly ₹310 – ₹320 per share. The iveco acquisition n stable domestic growth should help. Recommend Hold." Mayuresh Joshi of William O'Neill India told CNBC-TV18.

Shares of Tata Motors Ltd. the Commercial Vehicles entity, are trading 1.3% lower at ₹325 after seeing a marginal recovery from the lows of the day.