Shares of Tata Motors Ltd slump as much as 9.9 pct to 356.5 rupees, lowest since March, 2016. Stock posts biggest intraday pct loss since Nov, 2016.
Automaker on Monday reported a surge in quarterly profit, driven by higher sales at its Jaguar Land Rover (JLR) business after an exceptionally weak quarter a year earlier.
Q3 consolidated PAT came in lower than our estimate due to lower EBIT from the JLR business - Macquarie.
Adds seasonality of sales in key markets, along with JLR's model launch plans and rolling-off of unfavourable currency hedges, points to stronger growth and margins in Q4 FY18.
JLR continues to suffer from weak demand in the west, margin pressure from rising incentives, weakening product mix, and an ageing portfolio - CLSA.
Up to Monday's close, stock had fallen 24 pct in 12 month.
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