Thu Jan 30 10:27:27 UTC 2025: ## Tata Motors Shares Plunge After Jefferies Downgrade

**Mumbai, India** – Shares of Tata Motors plummeted 9% to a 52-week low on Thursday after Jefferies, a foreign brokerage firm, downgraded the stock to “underperform,” cutting its price target to ₹660 from ₹930. The decline comes despite the company reporting a ₹5,451 crore net profit for the December quarter, a 22% decrease year-on-year, and a 2.7% revenue increase to ₹1.13 lakh crore.

The drop is attributed in part to a slowdown in the luxury car market in China, impacting Tata Motors’ subsidiary Jaguar Land Rover (JLR). While JLR’s performance outpaced the overall market decline in China, the company acknowledges the challenges presented by the financial stress among Chinese car retailers. CFO PB Balaji expressed optimism for improved performance in the coming quarters as the situation stabilizes and cited strong performance in other markets like the US and UK.

Despite the negative market reaction, Balaji remains positive about JLR’s prospects, expecting volume improvements in the seasonally strong fourth quarter and anticipates JLR becoming net debt-free. He also downplayed concerns about potential US tariffs on UK-manufactured JLR vehicles exported to the US.

Tata Motors’ domestic passenger vehicle business saw a 4.3% year-on-year revenue decline to ₹12,400 crore, although EBITDA increased by 120 basis points to 7.8%. The company expects gradual improvement in domestic demand, anticipating a boost from infrastructure investments and government initiatives. The company received ₹351 crore in production-linked incentive (PLI) benefits during the quarter. Consolidated EBITDA stood at 13.7%, a 60 basis point year-over-year decrease. The company’s net automotive debt decreased to ₹19,200 crore. The board also approved an interim dividend of ₹2.50 per share.

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