Tata Motors shares drop on JLR margin guidance

Stocks

oi-Sunil

By Sunil Fernandes

Updated: Thursday, January 24, 2013, 10:08 [IST]

Shares of Tata Motors plunged after the company said that the EBTIDA margin for the quarter ending Dec 31 would be lower than the previous quarters for Jaguar Land Rover (JLR).

Shares of Tata Motors were last traded at Rs 290, down 7.3 per cent over Wednesdays closing.

"EBITDA is likely to be in the region of levels reported for the previous two quarters and EBITDA
margin is likely to be slightly lower than in the previous two quarters, primarily reflecting less favorable
exchange rates, the ongoing effect of a higher mix of Evoque sales and other factors, the company said in a statement.

Tata Motors was one of the best performing stocks in the Sensex in 2012, as analyst hoped on better performance of JLR globally.

However, there were a section of analysts who warned that auto stocks have run ahead of fundamentals, including Tata Motors.

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