Shares of
Tata Motors took a hit on the bourses on Friday, falling by over 6 per cent in morning trade on the NSE after the company reported below street expectations earnings for FY'11.
Bucking the strong broader market sentiment, the stock slumped by 6.19 per cent to an early low of Rs 1,090.35 on the NSE, while on the BSE, it slipped by 5.95 per cent to touch a one-month low of Rs 1,092.05.
"The fall in the stock is because of below street expectations earnings and slight disappointment in EBITA margin," Religare Securities Executive VP Retail Research Rajesh Jain said.
On the volume front, over 46 lakh shares of the company changed hands on the bourses during morning trade.
"Consolidated EBITA was below our estimate mainly due to higher raw material costs and higher other expenses," Emkay Global Financial Services said in a note.
Tata Motors reported an over three-fold rise in consolidated net profit for 2010-11 fiscal to Rs 9,273.62 crore.
The company had registered a net profit of Rs 2,571.06 crore in the 2009-10 financial year.
Meanwhile, the BSE benchmark
Sensex was trading at 18,193.32, up 148.68 points, at 1118 hours.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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