Tata Motors stock's underperformance may continue till JLR sales improve

Though the stock has fallen over 30% in the past year, multiple headwinds mean it will continue to lag its peers and the Sensex; consistent volume growth at JLR is crucial for rerating

Though Tata Motors’ share price is already down 3-plus per cent over a year, multiple headwinds mean it is likely to continue lagging its peers and the benchmark Sensex. Consistent volume growth at its British-based arm, Jaguar Land Rover (JLR), is crucial for a re-rating.

Monday saw the stock reach a 26-month low. It has been the biggest underperformer among frontline automobile stocks over the past year, shedding 33 per cent of its value. In comparison, the broader markets and the peer index (excluding Tata Motors) are up 13-14 per cent. Lower volume growth at JLR, elevated levels of discounts and