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Tata Motors shares go down 4% in early trade, know why

Tata Motors shares

Tata Motors shares slip over 4%

Tata Motors shares – Shares of domestic automaker Tata Motors dropped more than 4% today after Jaguar Land Rover (JLR), the company’s UK subsidiary, reported a 4.9% reduction in retail sales in Q2. Sales decreased to 8,121 units in Q2 from 92,710 units in the same quarter the year before. Additionally, JPMorgan downgraded the Tata Motors shares from overweight to neutral, reflecting the negative sentiment around the stock. According to the brokerage, JLR’s delayed deleveraging timeframes were the cause of the downgrading. The danger to JLR’s debt reduction goals increases if free cash flow generation is delayed.

Additionally, it reduced the Indian car major’s consolidated earnings per share (EPS) expectations for the years FY23 to FY25 by 12 to 25%.

The brokerage decreased its target price from Rs. 525 to Rs. 455.

Tata Motors shares

Shares of Tata Motors then started on the BSE down 2.21 percent at Rs 403.10 compared to the previous close of Rs 412.20. The stock continued to decline, reaching an intraday low of Rs 393.70 on the BSE, down 4.49 percent.

The last two sessions have seen a decline in the share price. Tata Motors is trading below the moving averages of the past five, twenty, fifty, one hundred, and two hundred days. The company’s market value decreased to Rs. 1.31 lakh crore. The stock has increased by 3.51% this year but will decrease by 18% in 2022. The company was the worst performer on the Nifty, dropping 4.54 percent to Rs 393.40 from its previous closing of Rs 412.15.

“Tata Motors may have seized the lead in EVs, but the load of JLR continues to hold it down despite leadership in four-wheeler EVs,” said Pranit Arora, co-founder and CEO of Univest.

As a result of global cues, the Sensex fell 721 points, or 1.17 percent, in the opening trade to 57,470. Nifty traded at 17,095 after losing 220 points, or 1.27 percent. The top Nifty losers were Tata Motors, Asian Paints, and IndusInd Bank.