Tata Motors share price falls after Jaguar Land Rover recalls 44,000 cars in UK
BusinessToday.In March 14, 2019
The Tata Motors share price fell in early trade today after its UK arm Jaguar Land Rover recalled 44,000 cars over carbon dioxide emissions. Tata Motors share price fell 2.18% to 177.65 compared to the previous close of 181.60 on BSE.
Tata Motors share price has been falling for the last two days and lost 2.57% during the period.
Tata Motors share has lost 48.75% during the last one year and gained 4.75% since the beginning of this year.
15 of 37 brokerages rate the stock "buy" or 'outperform', 18 "hold", three "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.
The Tata Motors share price was trading above its 50-day moving average of 174.24 and below its 200-day moving average of 192.44 levels, respectively.
Tata Motors stock clocked turnover of Rs 9.77 crore with 5.44 lakh shares changing hands on BSE.
Jaguar Land Rover's 10 models were found emitting more of the greenhouse gas than they had been certified to emit.
Jaguar Land Rover will contact car owners to rectify the issue.
Tata Motors' UK arm JLR is facing several challenges at the moment, including a fall in demand for diesel cars and a sales slowdown in China.
JLR said certain 2016-2019 MY Jaguar and Land Rover vehicles fitted with two litre diesel or petrol engines have been recalled voluntarily.
The affected models are some two-litre 2016 to 2018 Land Rover Discovery and Discovery Sport cars; certain two litre Range Rover Evoque, Sport, and Velar cars and Jaguar E-Pace, F-Pace, F-Type, XE and XF cars. Most models are petrol, while some are diesel.
Tata Motors share price was the top Sensex and Nifty loser on March 11 after UK arm Jaguar Land Rover (JLR) clocked a fall in February sales. Tata Motors share price fell 3.65% to 182.30 compared to the previous close of 189.20 on BSE. On Nifty, the stock fell nearly 3.50% to 182.25.
Morgan Stanley said for the stock to re-rate, JLR needs to exhibit stable and positive free cash flows. It maintains 'equal-weight' on the stock with a price target of Rs 184.
Positive free cash flows can be achieved either by strong internal cost cutting and a China rebound, or the company could tie up with another player to share capex spending, the brokerage said. JLR recorded a 4.1% year on year fall in retail sales in February at 38,288 vehicles.
Weak customer demand in China coupled with run out of the old Range Rover Evoque led to the weak sales show for the UK-based firm.
Edited by Aseem Thapliyal