Shares of Tata Motors took a hit on the bourses today, falling by over 6% in morning trade on the NSE after the company reported below street expectations earnings for FY2010-11.
Bucking the strong broader market sentiment, the stock slumped by 6.19% to an early low of Rs 1,090.35 on the NSE, while on the BSE, it slipped by 5.95% to touch a one-month low of Rs 1,092.05.
"The fall in the stock is because of below street expectations earnings and slight disappointment in EBITA margin," Religare Securities Executive VP Retail Research Rajesh Jain said.
On the volume front, over 46 lakh shares of the company changed hands on the bourses during morning trade.
"Consolidated EBITA was below our estimate mainly due to higher raw material costs and higher other expenses," Emkay Global Financial Services said in a note.
Tata Motors reported an over three-fold rise in consolidated net profit for 2010-11 fiscal to Rs 9,273.62 crore.
The company had registered a net profit of Rs 2,571.06 crore in the 2009-10 financial year.
Meanwhile, the BSE benchmark Sensex was trading at 18,193.32, up 148.68 points, at 1118 hours.
