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The article reports on the declining stock price of Tata Motors, India's largest electric vehicle manufacturer, as investors anticipate the company's upcoming second-quarter earnings report. The stock has fallen nearly 22% in the past three months, with a 2.3% drop on November 8th, the day before the earnings announcement. This decline comes despite a projected 32% increase in net profit for the quarter, as analysts anticipate strong performance in the Indian commercial and passenger vehicle segments as well as the UK-based Jaguar Land Rover (JLR).
While revenue is expected to remain relatively flat year-on-year, the projected profit surge is attributed to improved profitability across various segments. However, the article highlights potential challenges for JLR, particularly in the form of supply constraints that may impact production. The reduced share of the Jaguar lineup in the quarter is seen as a mitigating factor to these challenges.
The article also mentions that Tata Motors reported a slight drop in overall sales in October, with domestic sales showing a minor increase. Key areas of concern for the company include demand and margin prospects across segments, with potential pressures in the passenger vehicle sector due to high base effects and increased financing costs. The article concludes with the latest stock price information and a disclaimer emphasizing the need for independent investment advice.
Source: Tata Motors shares extend fall, slip 2% ahead of Q2 earnings