Tata Motors Share Price Falls for Fourth Straight Session Amid Weak JLR Outlook

Market Performance

Tata Motors' share price continued its downward trend for the fourth consecutive session on Tuesday.

• The stock dropped by 1.4%, hitting an intraday low of ₹677 on the BSE.
• It registered an intraday high of ₹687.05 during the same session.
• Over the past week, the stock declined by 5.36%.
• While the stock rose 3.63% in the last quarter, it has fallen by 31.62% over the past year.

Main News

The recent decline in Tata Motors' share price is primarily driven by Jaguar Land Rover's (JLR) revised financial outlook.

• JLR, a subsidiary of Tata Motors, lowered its profit margin guidance for the current financial year.
• The new margin forecast stands between 5% and 7%, compared to the earlier target of 10%.
• In the fiscal year ending March, JLR had reported a margin of 8.5%.

The downward revision has raised concerns among investors, particularly amid growing global economic uncertainties and heightened geopolitical tensions.

Company Details

Tata Motors, a major automotive player within the Tata Group, owns the luxury vehicle brands Jaguar and Land Rover.

• JLR highlighted that free cash flow for the current financial year is expected to be nearly zero.
• Despite financial pressures, the company reiterated its commitment to long-term investment strategies.
• Tata Motors emphasized its goal to deliver a resilient financial performance despite global headwinds.

Financial Summary

Revenue and Margins (JLR)

• FY ending March: Underlying profit margin at 8.5%
• FY Outlook: Margin guidance lowered to 5%-7%
• Previous Target: 10%

Free Cash Flow

• Expected to be near-zero for the ongoing fiscal year due to financial strain and global uncertainties.

Summary of the Article

Tata Motors' share price saw a fourth consecutive session of losses, influenced by JLR's revised profit outlook. The lowered margin guidance and financial constraints have impacted investor sentiment, contributing to a weekly decline of over 5%. Despite the challenges, Tata Motors remains committed to its long-term strategies and maintains a stable financial position.