NEW DELHI: Shares of Tata MotorsNSE -4.73 % fell 5 per cent in Tuesday's session, a day after the automaker reported a 49 per cent decline in consolidated net profit to Rs 1,108.66 crore for the quarter ended March 31.
The decline in profit was mainly a result of lower revenues and exceptional charge on account of its British arm Jaguar Land Rover.
Revenue for the quarter fell to Rs 85,676.33 crore from Rs 88,966.34 crore in the same quarter last year.
Ebitda for Jaguar Land Rover fell 40 bps to 9.8 per cent, while that of domestic business expanded 80 bps to 7 per cent.
Brokerages have mixed views on the stock
Global brokerage Jefferies maintained buy recommendation on the stock with a target price of Rs 250, highlighting that China turnaround is the key for the company.
Morgan Stanley, meanwhile, retained equal-weight view on the stock with a target price of Rs 184, underscoring that China and India weakness is dragging on earnings.
CLSA reaffirmed its sell recommendation on the stock with a target price of Rs 150. The brokerage said that the JLR outlook remains weak while Indian business value has cyclically peaked given an impending truck downcycle.
Shares of Tata Motors traded 4.89 per cent down at Rs 180.70 on BSE around 9:45 am.
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