Why Tata Motors share price fell by nearly 6% today

Tata Motors share price fell nearly 6%, with the intraday low so far being ₹613.20.

Published on: Apr 4, 2025, 15:14:34 IST

By HT News Desk

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The shares of Tata Motors fell by around 6% on Friday after global brokerage firm CLSA removed the stock from its high conviction outperform list.

A Tata Motors logo is pictured outside the company showroom in Mumbai, India. (Reuters file photo)

The CLSA had added Tata Motors to the list only about two months back.

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At 1:30pm, Tata Motors shares were trading at ₹614.95 on the Bombay Stock Exchange (BSE). This was a drop of 5.98% or ₹39.10 from the previous close.

The stock's intraday low so far is ₹613.20, while the high was ₹650.95.

At the same time, it was also the stock which fell the third-most on the Nifty Auto Index, which as a whole, had dropped by 2.46%, reaching 20,642.90.

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It followed Samvardhana Motherson International which was down by 7.41%, trading at ₹119.39, and Bharat Forge, which was down by 6.42%, trading at ₹1,045.40 on the National Stock Exchange (NSE).

CLSA also downgraded Tata Motors back to a regular “outperform” rating. It also cut its price target by 18%, from ₹930 to ₹765, according to an India Today report.

One of the reasons why CLSA might have downgraded the automaker is due to a drop in Jaguar Land Rover (JLR) sales, with the company stating that the US tariffs which came into effect recently as well as the discontinuation of some Jaguar models, could lead to a 14% drop in JLR’s sales in the financial year 2025-26, according to the report.

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CLSA also expects Tata Motors' margins to drop to 7% in 2026-27, compared to the 9% it is expected to achieve this year, and it has also lowered its estimate for JLR’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for the financial year 2026.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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