Tata Motors shares slid over 0.5 per cent in the afternoon trade on Monday after the company reported nearly 50 per cent fall in net profit figures for the quarter ended June 2015 on August 7 post market hours.

The share price closed 1.71 per cent lower at Rs 385.85 on Monday.

During April-June period, net profit of the company declined 48.71 per cent to Rs 2768.91 crore. The company earned Rs 5398.21 crore in the corresponding quarter a year ago. According to Reuters report, the company has cut sales and production targets for Jaguar Land Rover in China.

According to Jefferies, operating leverage rather than pricing was the reason for weak profitability, implying margins could potentially improve as production of the new models ramp up.

Market analysts trim estimates for Tata Motors shares but keep “buy” rating saying China related weakness looks largely discounted and valuations remain supportive.

The stock has 40 buy, 3 hold, 2 sell ratings, according to Eikon data.

Since the beginning of the ongoing financial year, the share price of the company tanked around 30.47 per cent to Rs 392.55 on August 6. The share price was at Rs 564.55 on April 1.

According to Credit Suisse, given the sharp fall in the stock in the past few months, it is factoring in China negatives but ignoring positive response to recent launches and strong product cycle.

Analysts are positive on the further movement of Tata Motors shares. Nomura sees it around Rs 581 in the next few quarters and Angel Broking believes it can touch Rs 425.

(With inputs from Reuters)