Sharemasterindia.com: Tata Motors shares, on track for a sixth straight day of fall, traded 2.5 per cent lower on Friday. The stock was among the top Nifty losers today.
Tata Motors shares have shed over 10 per cent since May 26, when the company reported a 56 per cent drop in its March quarter net profit. Profitability of India's biggest automaker by revenue was hit because of slowdown in Jaguar Range Rover sales in China. Tata Motors' bottom line was also impacted by one-off losses.
Market analyst Ambareesh Baliga said weak JLR sales have dented Tata Motors shares. As far as commercial vehicle sales are concerned, Ashok Leyland is a better bet, he added.
"The expectation was that the performance will be superlative, but they came with below-average performance. This is the disappointment that is playing out," said Mr Baliga.
Lancelot D'Cunha, CEO of ITI Wealth Management said investors can buy Tata Motors shares with a 1-2 year perspective as the stock can move higher around Rs 550. The selling in Tata Motors has been more than what is warranted, he added.
"China might have shown some slowdown, but JLR will continue to grow in Chinese and other markets because they are introducing new models in coming years," Mr D'Cunha said.
Commercial vehicles sales have also picked up some traction, which could add to valuations of Tata Motors, he added.
As of 11.56 a.m., Tata Motors shares traded 2.40 per cent lower at Rs 223.50 as compared to a 0.75 per cent drop in the auto sub-index in the BSE.
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