Tata Motors falls as brokerages downgrade stock

Brokerage firm Nomura downgraded Tata Motors from ‘buy’ to ‘neutral’, citing potential demand risks for its British subsidiary Jaguar Land Rover (JLR).
Image used for representational purposes only.
Image used for representational purposes only.File Photo | AFP

NEW DELHI: Despite reporting a profit after tax (PAT) of Rs 17,500 crore for the quarter edging March FY24, shares of Tata Motors crashed up to 9% on Monday, its biggest single-day fall since February 2022, after major brokerages downgraded the stock following weaker outlook and cautious management commentary for financial year 2025.

The share closed 8.34% lower on Monday at Rs 960 apiece on the BSE even as equity benchmarks - Sensex and Nifty – recouped early losses and closed the session with minor gains. Brokerage firm Nomura downgraded Tata Motors from ‘buy’ to ‘neutral’, citing potential demand risks for its British subsidiary Jaguar Land Rover (JLR).

Analysts at Nomura foresee sluggishness in FY25, particularly citing an anticipated dip in local passenger vehicle (PV) demand due to ongoing elections. Morgan Stanley (MS) also downgraded the stock to ‘equal-weight’ from ‘overweight’, suggesting limited incremental upside due to a ‘banner year’.

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