Shares of Tata Motors fell as much as 5% in Monday's trade after the automobile major on Friday reported a 4.9% decline in Jaguar and Land Rover (JLR) sales at 88,121 units for the July-September quarter. The company had posted retail sales of 92,710 units in the same quarter of the previous fiscal.
The stock opened 2.20% lower at ₹403.40 against the previous close of ₹412.15 on the BSE, and it continued to fall to an intraday low of ₹393.05 and then stock finally finished the day at ₹396.70, down 3.76%. The stock has been in a downtrend since mid-August and has dropped 20% to date.
The sales of the Jaguar brand were at 17,340 units in the second quarter as against 19,248 units in the year-ago period, down 9.9 per cent. Similarly, sales of the Land Rover brand were down 3.65 per cent at 70,781 units as compared to 73,462 units in the same quarter a year ago, PTI reported.
"The company continues to see strong demand for its products, with global retail orders again setting new records in the quarter," it said, adding, as, on September 30, 2022, the total order book has grown to 2.05 lakh units, up around 5,000 orders from June 30, 2022.
Following the company's announcement, global brokerage firm JP Morgan has downgraded the stock to 'neutral' from 'overweight' and trimmed its target price to ₹455 from the previous target price of ₹525.
It also reduced the FY23-25 consolidated earnings per share (EPS) estimates by 12-25 percent.
Another top global brokerage firm, Morgan Stanley, also reduced its price target by over 11% and forecast a per-share loss of 6.2 Indian rupees for fiscal 2023, compared with a prior estimate of per-share earnings of 21.5 rupees.
On October 03, the company reported a 40% rise in domestic sales to 80,633 units in September as against sales of 55,988 units in the same month of the previous fiscal.
Passenger vehicle sales for the company were up 85% to 47,864 units in September. Commercial vehicle sales for Tata Motors grew 5% to 34,890 units in September this year. This stood at 33,258 units in the corresponding month of last year.
Tata Motors posted a consolidated loss of ₹5,006 crore for the June ending quarter compared with ₹1,032.8 crore recorded in March 2022. Consolidated revenue increased 8.68% year on year (YoY) to ₹71,227.76 crore from ₹65,535.38 crore in the previous quarter.
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