Tata Motors' shares fell over 7 per cent today, in line with broader markets due to the negative global cues. Bank of England said last week that Britain's economy was now in recession, a weakened sentiment around Tata Motors stock today. Tata Motors UK arm Jaguar Land Rover JLR contributes 67 per cent of the revenues of the Indian auto firm. Tata Motors' stock fell 7.02 per cent to Rs 393.35 against the previous close of Rs 423.05 on the BSE. Tata Motors shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The firm's shares of 6.60 lakh changed hands, amounting to a turnover of Rs 26.49 crore on the BSE.
The firm's market cap fell to 1.32 lakh crore on the BSE. The large cap stock has gained 24.72 per cent in a year, but lost 18 per cent in 2022. Negative cues from the Russia-Ukraine war, economic slowdown after Covid 19 lock downs across the world, spike in commodity prices and a loss of production have affected sentiment around the stock in the year 2022, as well as a shortage of semiconductors.
The stock of Tata Motors hit a 52 week high of Rs 536.50 on November 17, 2021 and a 52 week low of Rs 316 on September 24, 2021.
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As per the company, JLR faces headwinds due to lockdowns in China for Covid 19 and the global supply chain issues in its UK subsidiary, caused by the war in Ukraine and difficult macroeconomic conditions, said Ravi Singh, head of research at Share India. The problems may affect JLR financially in FY 23. In India, the company's vehicles across commercial vehicle and passenger vehicle segments including EVs remained robust, which positively impacted Tata Motors sales in the short term. The stock price may show signs of strength to touch the levels of 500 to 500 until Diwali due to festive demand. The JLR sales that contributes to a majority of the Tata Motors revenue is a factor in the long-term outlook of the stock. Tata Motors' Q 1 loss increased to Rs 4,951 crore in the quarter ended June 2022 against a consolidated net loss of Rs 4,450 crore in the corresponding quarter of last fiscal. Revenue from operations in Q 1 stood at Rs 71,935 crore against Rs 66,406 crore in the year-ago period.
In the year-ago period, Tata Motors reported a net loss of Rs 1,321 crore on a standalone basis. Revenue from operations was 14,874 crore in Q 1 compared to Rs 6,577 crore in the same period a year ago.