Shares of Tata Motors on Thursday plunged more than 5% in the early deals to over a 5-year low after Ratan Tata's dream project 'Tata Nano' seemed to be inching closer towards the dead end.
Shares of Tata Motors on Thursday plunged more than 5% in the early deals to over a 5-year low after Ratan Tata’s dream project ‘Tata Nano’ seemed to be inching closer towards the dead end. Tata Motors has produced only 1 unit of Tata Nano and has sold only 3 vehicles in the month of June 2018 with no exports, the latest exchange filing by Tata Motors showed. Shares of Tata Motors have been broadly falling since late-September 2016 and in the CY 2018 only, the stock has lost about 40% of its value. However, Tata Motors has yet not decided to stop the production of Tata Nano.
The stock of Mumbai-headquartered Tata Motors fell as much as 5.43% to a 5 year low of Rs 252.55 on NSE on Thursday. This is the lowest level since 5 April 2013 when Tata Motors stock made a low of Rs 251.8 on NSE, according to the exchange data. Shares of Tata Motors emerged as the biggest losers among the components of the key equity indices Sensex and Nifty on Thursday.
Notably, Tata Motors m-cap (market capitalisation) has fallen below the automaker Eicher Motors and is now way behind the arch-rivals Mahindra and Mahindra and Maruti Suzuki. On the basis of the share price of Rs 252.55, Tata Motors held a market capitalisation of Rs 72,920 crore on BSE. Eicher Motors commands a market capitalisation of around Rs 76,600 crore. According to Wednesday’s closing price of Rs 267, Tata Motors held a market capitalisation of Rs 77,092 crore on BSE.
Earlier in June 2017, Tata Motors manufactured 275 units of Tata Nana, sold 167 units in the domestic market and exported 25 units. “We are well aware that the Nano in its present form cannot continue beyond 2019 and may need fresh investments to survive. No decision has been made yet in this regard,” a PTI report said citing an unidentified spokesperson of Tata Motors. Way back in late-2013, Ratan Tata had admitted Tata Motors made a mistake by branding Tata Nano as ‘the cheapest car’.