The share price of Tata Motors fell by 2% today after analysts at Morgan Stanley downgraded their rating on the stock to “underweight” from “equal-weight”.
The brokerage firm cited a number of factors for its downgrade, including the ongoing chip shortage, which is affecting production at Tata Motors’ plants. Morgan Stanley also said that it expects the company’s margins to be under pressure in the near term.
Despite the downgrade, Tata Motors’ share price is still up by around 10% in the year to date. The company has been benefiting from strong demand for its electric vehicles, which are gaining market share in India.
Updates:
- Tata Motors’ share price opened at ₹454.80 per share today, down from ₹462.85 per share on Friday.
- The stock touched a high of ₹460.80 per share and a low of ₹452.20 per share during the day.
- At the close of trading, Tata Motors’ share price was ₹453.65 per share, down by 2.1%.
- The market capitalization of Tata Motors is ₹1.3 trillion.
Analysts’ view:
Morgan Stanley’s downgrade is a negative sign for Tata Motors, but it is important to note that the stock is still up by around 10% in the year to date. The company is facing some challenges, but it is also benefiting from strong demand for its electric vehicles.
It is too early to say whether the downgrade will have a lasting impact on Tata Motors’ share price. However, investors should keep an eye on the company’s performance in the coming months.
If you are considering investing in Tata Motors, you should carefully consider the risks and rewards involved. You should also consult with a financial advisor to get their opinion on the stock