Tata Motors down 1.2%

Brokerage agency CLSA has downgraded Tata Motors from “Buy” to “Sell” at a target price of Rs.408. It said company’s domestic passenger vehicle business is overvalued. On the other hand JLR is lagging i electrification. 

The stock currently trading around Rs.492. Today stock reacted negatively after this report. The stock is down 1.2%.

CLSA opined that the demand for automobiles is still weak. As per its report, there might be 30% decline in Tractor segment and 6% in 2-wheeler segment on Month on month basis. On the other hand, there might be 20% rise for commercial vehicles and 2% for passenger vehicles.