Shares of India’s Tata Motors Ltd fell 4.6% on Monday after the automaker reported lower-than-expected wholesale volumes for its Jaguar Land Rover business, prompting brokerage JP Morgan to downgrade the stock over the weekend. .
Tata Motors said late Friday that its Jaguar Land Rover wholesale volumes – excluding its joint venture in China – for the second quarter stood at 75,307, while in August, wholesale volumes were estimated to be around 90,000.
The country’s largest automaker blamed lower-than-expected supplies of specialty chips from a supplier for failing to meet its target.
However, it said new deals with semiconductor suppliers would improve sales in the second half of the fiscal.
“We will need more clarity on the pace of production recovery at Jaguar Land Rover,” JPMorgan analyst Amin Pirani wrote in a note to Tata Motors’ rating from “overweight” to “neutral”. was.
The brokerage cut its price target to 455 Indian Rupee (5.52) from INR 525 to INR. Shares were down 3.8% at INR 396.4 on Monday.
According to Refinitiv, the current average rating among 30 analysts covering the stock was “Buy” and the average price target was INR 530.
($1 = 82.3680 Indian Rupee)