Tata Motors’ 4-day loss streak fell by 8%. Tata Motors’ shares cut by more than 1% at Rs 678.75 as of the last 12:42 pm, while the low price on the day reached the BSE price of Rs 677.
Why is Tata Motor’s stock going down?
The company’s UK subsidiary, Jaguar Landrover (JLR), met on Investors Day to lower guidance, with ongoing profit margins expected to be lower for fiscal 2025-26. This is in the context of a large investment in electric vehicles (EVs) and model upgrades.
In addition, among the major macro risks, the company raised concerns about zero cash flow.
Additionally, the overall soft environment is attributed to weak demand for Chinese premium cars, a slowdown due to macro factors and U.S. tariff tensions.
Additionally, the UK-based luxury car maker also expects a 15% growth in the premium automotive sector.
Nevertheless, the company expects previous interest or earnings, I Enterest and tax incentives in the range of 5-7%.
So despite recent headwinds, JLR aims to reach profit and cash flows in the next fiscal year.
Tata Motor’s stock price performance
The stock has generated 620% Mutlibagger returns over the past 5 years, compared with its 8.5% return at the beginning of the year.
