Shares of the Tata Group company – Tata Motors have fallen over 8 per cent in its 4-day losing streak. As of the last count at around 12:42 pm, Tata Motors shares traded with a cut of over 1 per cent at Rs 678.75, while at the day’s low it hit a price of Rs 677 apiece on the BSE.
Why shares of Tata Motors have been declining?
The company’s UK subsidiary Jaguar LandRover (JLR) during its Investor day meet lowered guidance with profit margins expected to be lower for the ongoing FY 2025-26. This is on the backdrop of substantial investments in electric vehicles (EVs) as well as model upgrades.
Additionally, amid prevailing macro risk, the company raised concerns about zero cash flow.
Furthermore, the overall subdued environment is attributed to weak demand for premium cars from China, slowdown due to macro factors and US tariff tensions.
Besides, the UK-based luxury automaker also anticipates a 15 per cent de-growth in the premium car segment.
Nontheless, the company expects EBIT or earnings before, iinterest and taxes margins to remain in the range of 5-7 per cent.
So, despite near-term headwinds, JLR aims for imporoving margins as well as cash flow by the next fiscal year.
Tata Motors share price performance
In the past 5 years, the stock has generated mutlibagger return of 620 per cent, while its year-to-date return is in the negative at 8.5 per cent.
