Tata Motors stock tanks 9.3 pct to hit a near-decade low

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Published: August 22, 2019 3:31:13 AM

Interestingly, the market capitalisation of Tata Motors, which boasted over 14% to the Tata Group’s market valuation in the beginning of 2018, plunged to just 3.1% as on Wednesday.

Tata Motors, Tata Motors news,Tata Motors share, Tata Motors stock, Tata Motors ltd, market news, Edelweiss Research observes Tata Motors continues to face multiple headwinds. The profitability of JLR is affected by the slowdown in China.

Shares of Tata Motors tanked 9.3% to hit a near decade low on Wednesday as lacklustre demand and concerns over trade rift between the US and China put investors on the back foot. The stock of country’s largest commercial vehicle maker slid as much as 11.5% in intra-day trade before settling at Rs 112.30 on the BSE. Wednesday’s fall was the biggest single-day drop in over six months.

Interestingly, the market capitalisation of Tata Motors, which boasted over 14% to the Tata Group’s market valuation in the beginning of 2018, plunged to just 3.1% as on Wednesday. What’s more, the company which enjoyed 20th position in M-Cap rank about one-and-a-half years ago has lost over Rs 1 lakh crore to Rs 35,134 crore. Consolidated net loss nearly doubled in Q1FY20 to Rs 3,698 crore due to lumpy cost at Jaguar Land Rover (JLR) and falloff in India volumes.

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Edelweiss Research observes Tata Motors continues to face multiple headwinds. The profitability of JLR is affected by the slowdown in China. Brexit uncertainty could further add pressure. Moreover, the outlook for India business is also hazy. However, strong focus on cost control and cash flows is encouraging.

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