The Tata Motors stock fell in trade today after its subsidiary Jaguar land Rover said a so-called "hard Brexit" would cost it 1.2 billion pounds ($1.59 billion) a year, curtailing its future operations in the UK. Britain's biggest carmaker said UK plants and at least 40,000 jobs would be at risk if the country left the European Union without a free trade deal.
JLR exports 80% of its cars worth 18 billion pounds annually.
At 12:17 pm, the stock fell 2.73% or 7.20 points to 259.80 level. It hit over five year low of 252.55 level intra day, lowest since April 2013. The stock was the among the top Sensex losers in morning trade. It closed 2.06% lower at 261.50 level. The stock has been falling for the last two days and is down 3.64% during the period.
The stock fell over 39% percent since the beginning of this year and during the last one year.
"Prima facie, 1.2 billion pounds looks on the higher side and hence the reaction to the stock today," said Basudeb Banerjee, analyst with Ambit Capital.
Analysts and brokerages are largely bullish on the stock.
Motilal Oswal on June 25 gave a buy rating on the stock when it was trading at 307.35. The brokerage sees the stock rising to 431 level in an year.
Edelweiss too on June 25 gave a buy rating on the stock when it was trading at 307.35. The brokerage sees the stock rising to 314 level.
Prabhudas Lilladher assigned a buy rating to the stock on June 26, 2018 , when the price fell to 289.85 level. It sees the stock rising to 378 level in an year.
ICICIdirect.com on July 29 assigned a buy rating to the stock when it was trading around 267.28 level. It sees the stock rising to 355 level in an year.
At least 27 of 40 brokerages rate the stock "buy" or higher, 11 "hold" and one each "hold" and "sell" today, according to Reuters.
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