Tata Motors drops on Moody's view

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, April 15, 2013, 13:23 [IST]

Tata Motors was down more then 2.7 per cent in trade, as rating agency Moody's said Tata Motors diminishing market share is credit negative. At 1.15 PM, the stock was trading at Rs 269.35.

In 2012, Tata Motors was by far the best performing stocks from the Sensex companies gaining an astounding 79 per cent.
Hope of a better then expected performance at its Jaguar Land Rover (JLR) unit, saw frenzied buying in the scrip through 2012. In 2013, the stock has underperformed the benchmark indices.

Recently, the stock cam in for severe selling pressure as China tightened fuel efficiency guidelines, which analysts say would hurt sales of Jaguar Land Rover units. China accounts for 20 per cent of JLR's overall revenue and 40 per cent of JLR's EBITDA or earnings before interest, tax, depreciation and amortization, according to reports.

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