Tata Motors is still seen struggling with the irrational and wrong acquisition of JLR, even after over 10 years have passed, with acquisition of JLR at around US $3.2 billion then. However, Tata and few Global Investment Bankers, have never admitted of this blunder, or will never admit, as this will reflect directly on Ratan Tata at Tata, while same International IB were advisers to JLR acquisition.

Q4FY21 numbers posted by the company, shows robust numbers from CV segment on standalone basis, while PV segment is seen struggling, known for Small Car dream of Rs.1 lakh car, NANO. Q4 standalone PAT is at Rs. 1,645 cr., giving an EPS of Rs. 4.40 for Q4 FY21.

But consolidated Q4 numbers played havoc and spoilsport, with Q4 net loss of Rs. 7,605 crore. This is due to Rs. 14,994 cr, being an exceptional item, “Charge associated with change in JLR strategy” is responsible and instrumental. How one can see such a big loss, which was not discussed or expected by any Fund House, Media or Analysts? Simple one para narrated on this loss can justify such a mammoth loss?  

Media, who otherwise stripped UPL promoter for Rs. 25 cr. perceived loss, will happily accept this exceptional loss, while infact may support it as Balance Sheet cleaning process. This is because BIG Fish have made share price move from Rs. 165, in December 2020, to Rs. 330 now. Till these BIG Fish exit from the stock, Media and few Analysts in collusion, will talk good of the stock, to see that share price does not fall.

So, retail investors BEWARE.

No need to buy TATA Motor Car and Share.

This is not a sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.