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Shares of Tata Motors today hit a 2-week low, as the company has posted biggest quarterly loss in nearly nine years. The stock plunged as much as 5.34 per cent to Rs 250, lowest since July 18.
Tata Motors posted its worst quarterly loss in nine years at Rs 1,863 crore in the quarter ended June 30 as Jaguar Land Rover continues to face headwinds. The company had reported a profit of Rs 3,199.93 crore in the same quarter last year. Revenues were up 12.25 per cent at Rs 65,956.78 crore (Rs 58,766.07 crore).
Jefferies has cut the price target to Rs 355 from Rs 440 and maintained “buy” rating. It says while this may seem like a one-off (hurt by China import duty cut), such disappointments have been a recurring issue for JLR in a weak environment.
Credit Suisse has cut the price target to Rs 440 from Rs 460, and has maintained “outperform” rating. About 26 of 39 brokerages have rated the stock “buy” or higher, 11 ”hold” and two “sell” or lower; median price target is Rs 358, according to Thomson Reuters Eikon data.
Tata Motors has an estimated PE of 8.56, lower than the sector average of 17.43. More than 16 million shares changed hands, compared with 30-day average of 11.4 million shares.
(With inputs from Reuters)
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