Tata Motors Passenger Vehicles (TMPV) saw a sharp fall in its share price during Monday’s trading session. The stock dropped by nearly 7%, even though the company’s net profit has grown significantly over the past year. So why has the Tata Group stock taken such a hit?
The company’s net profit surged by 2,110% over the last year. However, its revenue declined by 13.5% compared to the previous year. The weaker performance of Jaguar Land Rover (JLR) has had a direct impact on the company’s overall results. A recent cyberattack incident has also affected JLR’s operations.
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Following these setbacks, several brokerage firms have downgraded their ratings for the stock, which has further influenced the price decline.
Motilal Oswal has issued a 'Sell' recommendation for the stock.
Nuvama Institutional Equities has also downgraded it to 'Reduce', advising investors to lower exposure. The firm has set a target price of ₹385 for September 2027.
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ICICI Securities has changed its rating from 'Add' to 'Hold', indicating that investments in this Tata Group stock may not be profitable at this time.
(Ei Samay Online does not offer any investment advice. Investments in the stock market or in any financial product carry risk. Proper research and expert consultation are recommended. This report is published purely for informational and educational purposes.)
