Tata Motors, after reporting decline in consolidated net profits for Q4FY18 by 50% in comparison to the year ago period at Rs. 2175 crore, saw its shares slump by as much as 7% in intra-day trade on Thursday. The stock recorded a day's low of Rs. 284.10 on the NSE after brokerages despite maintaining the rating on the stock reduced 12-month target price.
The decline in net profits came mainly due to a drop in sales volume in the UK which witnessed a drop of nearly 12%. In today's trading day, the stock touched a high of Rs. 307.65 per scrip.
CLSA, the global broking firm has maintained a 'sell' call on the stock and at the same time reduced its target price from Rs. 330 to Rs. 295. The brokerage firm cites the revenue and margins from JLR over the period of FY19 to FY 21 to remain muted.
Other brokerages have maintained a mixed view with respect to the Tata Motors stock while Jefferies holds a 'buy' rating; Morgan Stanley maintains an 'equal weight' rating for the manufacturer of luxury car maker.
At the time of reporting, the stock of Tata Motors was quoting 5.7% lower at Rs. 291.8 on the NSE.