Tata Motors slumps 4% on poor JLR global sales

Tata Motors shares dropped 4 percent in the afternoon session on Friday after its British luxury car unit, Jaguar Land Rover (JLR), reported a decline in sales.

JLR's global sales fell 4.1 percent to 38,288 units in February, as weaker market conditions continued to weigh on sales in China.

Retail sales were up significantly in North America (25.4 percent) and UK (11.3 percent) while Europe posted modestly higher growth of 1.1 percent in sales.

"However, weaker market conditions continued to weigh on sales in China, which posted a decline 47.6 percent year-on-year," JLR said in a statement.

Morgan Stanley, in a report, said for the stock to re-rate, JLR needs to exhibit stable and positive free cash flows. It maintains 'equal-weight' on the stock with a price target of Rs 184.

Tata Motors shares have lost 46.81 percent in the last one year but gained 6.60 percent since the beginning of this year.

At 1:10 pm, the stock was quoting at Rs 183.25, down 3 percent on the BSE. In comparison, the S&P BSE Sensex was trading down 0.3 percent.