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Shares of Tata Motors fell by over 6 per cent in the morning trade on the NSE after the company reported which were below street expectations earnings for FY 2010-11.
Bucking the strong broader market sentiment, the stock slumped by 6.19 per cent to an early low of Rs 1,090.35 on the NSE, while on the BSE, it slipped by 5.95 per cent to touch a one-month low of Rs 1,092.05.
During the noon session, the scrip was trading down by 6.57 per cent at Rs 1,085 on the BSE and down by 6.6 per cent at Rs 1,085.65 on the NSE.
“The fall in the stock is because of below street expectations earnings and slight disappointment in EBITA margin,” the Religare Securities Executive V-P, Retail Research, Mr Rajesh Jain, said.
On the volume front, over 46 lakh shares of the company changed hands on the bourses during the morning trade.
“Consolidated EBITA was below our estimate mainly due to higher raw material costs and higher other expenses,” Emkay Global Financial Services said in a note.
Tata Motors had reported an over three-fold rise in consolidated net profit for 2010-11 fiscal to Rs 9,273.62 crore against Rs 2,571.06 crore in the 2009-10 financial year.
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