Shares of Tata Motors slipped over 7 per cent today in line with broader markets amid negative global cues. Bank of England saying last week that Britain’s economy was now in recession, weakened sentiment around the Tata Motors stock today. Tata Motors’ UK arm Jaguar Land Rover (JLR) contributes 67 per cent to the revenues of the Indian auto firm. Tata Motors stock fell 7.02 per cent to Rs 393.35 against the previous close of Rs 423.05 on BSE. Tata Motors shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Total 6.60 lakh shares of the firm changed hands amounting to a turnover of Rs 26.49 crore on BSE.
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The market cap of the firm declined to Rs 1.32 lakh crore on BSE. The large cap stock has gained 24.72 per cent in a year but lost 18 per cent in 2022. Negative cues emanating from the Russia-Ukraine war, the economic slowdown after Covid-19 lockdowns across the world, spike in the cost of commodities and a loss of production due to shortage of semiconductors have affected sentiment around the stock in 2022.
Tata Motors stock hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 316 on September 24, 2021.
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Ravi Singh, vice president, head of research at Share India said, “As per the company, JLR faces headwinds due to lockdowns in China for Covid-19, the global supply chain issues in its UK subsidiary caused by the war in Ukraine and difficult macroeconomic conditions. These problems may impact JLR financially in FY23. However, in India, company’s vehicles across commercial vehicle and passenger vehicle segments including EVs remained robust, which positively impacted Tata Motors sales in the short term. The stock price may show some strength to touch the levels of Rs 500 till Diwali amid festive demand. The long-term outlook of the stock remains weak citing the JLR’s sales which contributes a majority of chunk to Tata Motors revenue.”
Tata Motors’ Q1 loss widened to Rs 4,951 crore in the quarter ended June 2022 against a consolidated net loss of Rs 4,450 crore in the corresponding quarter of last fiscal. Consolidated revenue from operations in Q1 stood at Rs 71,935 crore as against Rs 66,406 crore in the year-ago period.
On a standalone basis, Tata Motors reported a net loss of Rs 181 crore against a net loss of Rs 1,321 crore in the year-ago period. Revenue from operations stood at Rs 14,874 crore in Q1 as against Rs 6,577 crore in the same period a year ago.