Tata Motors share skids 5% on disappointing Q4; CLSA retains 'sell' rating

Tata Motors share price tumbled over 5 per cent in early deals on Tuesday, in an otherwise strong market, after the auto major reported lower-than-expected set of numbers for the March quarter. The company has reported a 49 per cent decline in its consolidated net profit at Rs 1,108 crore compared to Rs 2,175 crore in a year ago period, dented by restructuring costs and exceptional charge on account of its United Kingdom Jaguar Land Rover.

For the financial year 2018-19, the company has posted a consolidated net loss of Rs 28,826.23 crore as against the consolidated net profit of Rs 8,988.91 in the last fiscal.

Reacting to earnings number, Tata Motors share price fell as much as 5.57 per cent to touch an intra-day low of Rs 179.40 against previous close level of Rs 190 on the Bombay Stock Exchange. Paring some of early losses, the scrip was currently trading at Rs 181.15, down 4.66 per cent.

In a similar trend, Tata Motors shares were currently trading 4.50 per cent lower at Rs 181.60 apiece on the National Stock Exchange. The scrip opened at Rs 185.25, against previous close level of Rs 190.15, and touched an intra-day low of Rs 179.30.

Also Read: Tata Motors posts net loss of Rs 28,826 crore in FY19, JLR turns profitable in Q4

Analysts at CLSA has retained 'sell' rating on Tata Motors stock with a target at Rs 150 per share, citing weak JLR outlook and dip in Indian business. "Indian business margin slipped QoQ despite higher volume. JLR margin guidance cut and cash flow outlook for FY21 looks weak as guidance cut underlines challenges of improving profitability," Moneycontrol quoted CLSA as saying this.

Among others, Citi Research recommended a 'buy' rating with a target price of Rs 220, while Morgan Stanley and Motilal Oswal gave 'neutral' call on the stock.

Meanwhile, the BSE Sensex was trading at 39,451.71, up by 99.04 points, or by 0.25 per cent, and the NSE Nifty was up by 30.35 points, or by 0.26 per cent, at 11858.6. In the opening trade, the Indian benchmark indices, Sensex and Nifty, hit all time  high after exit polls predicted that BJP-led National Democratic Alliance (NDA) would get a clear majority in the 2019 Lok Sabha elections.

Edited by Chitranjan Kumar

Also Read: Terrific Tuesday for markets! Sensex hits all-time high of 39,560, Nifty breaches 11,870 mark