Shares of Tata Motors got battered on Wednesday falling nearly 12 per cent as investors were disappointed over lower Jaguar Land Rover margins even as the company posted an over two-fold jump in consolidated profits.
Shares of the company settled at Rs. 243.35, down 11.80 per cent on the BSE, eroding a whopping Rs. 7,616 crore from its market capitalisation in a single trading session. Intra-day, the stock had slumped 12.35 per cent to Rs. 241.80.
At the end of the day, the market capitalisation of Tata Motors, which was the biggest drag on the BSE 30-share Sensex, stood at Rs. 65,497 crore, down from its Rs. 73,113 crore on Tuesday.
While Tata Motors' March quarter earnings were in line with market expectations, JLR margins were lower than estimates resulting in the massive slide in shares, experts said.
“In the March quarter, the JLR models disappointed on the margins front. Margins in the quarter under review grew by over 14 per cent, as against the market expectation of over 18 per cent,” Ashika Stock Brokers, Research Head, Paras Bothra said.
