At 9:21 AM today, Tata Motors’ stock saw a sharp decline of 3.8%, trading at ₹996.40, following a downgrade from UBS, which issued a “Sell” rating and set a target price of ₹825. Concerns were raised over Jaguar Land Rover’s (JLR) rising discounts on premium models, affecting the company’s profitability outlook.
UBS pointed out that discounts on the Range Rover Sport have surged, and further discounts on other key models like the Range Rover could be expected soon. The firm noted that JLR’s previously strong order book is now below pre-COVID levels, signaling a potential slowdown in demand. This could add to margin pressures, especially with JLR’s premium models such as the Defender, Range Rover, and Range Rover Sport having previously driven significant gains in average selling prices (ASP) and gross margins.
UBS also flagged the risk of margin slippage within Tata Motors’ Indian passenger vehicle segment, particularly in the electric vehicle (EV) division, due to high valuations and the potential for underperformance.
Stock Price Details
Open: ₹1,000.00
High: ₹1,011.55
Low: ₹993.80
Previous Close: ₹1,035.80
The stock’s decline follows a negative sentiment spurred by UBS’s report, leading to heightened caution among investors.
