Tata Motors Shares Drop Over 4%; Decline Continues After UBS 'Sell' Rating

Tata Motors shares continue to be on the path of decline as one of the largest car-making companies in India struggles at bourses.

Tata Motors Affected By UBS' 'Sell' Rating

On Wednesday, September 11, the company shares saw a major decline. The slump even went past the 5 per cent mark. This has brought the overall price of the company shares to under the landmark Rs 1,000 per share.

This development comes to pass amid a 'Sell' rating that was issued by finance behemoth, UBS Securities. In fact, this is the consecutive trading session for which the broking firm has retained the 'Sell' rating. UBS has set the target price of Rs 825 per share.

The concerns of the broking firm lie in the apparent decline of the prospect company. There are fears of potential further decreases due to margin constraints at the company's luxury unit, Jaguar Land Rover, and in the domestic passenger vehicle category.

The Land Rover wing has been at the centre of slowdown and speculation for the past few quarters.

Tata Motors Shares Slump

The company shares have dipped by over 8 per cent in the past 5 trading sessions alone. The monthly picture also does not appear rosy; the Tata Motors shares dropped by 8.38 per cent.

As far as the progress in today's intraday trade is concerned, Tata Motors shares sank further. At 12:41 IST, Tata Motors shares dipped by 4.89 per cent or Rs 50.70. This took the company shares to Rs 985.10. 

The JLR Problem

When it comes to Tata's Jaguar question, it is to be noted that the luxury car wing's order book fell to 1,04,000 units, down from 1,33,000 vehicles in Q4FY24, this as per the company's Q1FY25 earnings report.

In addition to that, Jaguar Land Rover achieved revenue of Euro 7.3 billion in the June quarter.

This is regarded as the company's best first-quarter revenue on record, up 5 percent from the June quarter of FY24.