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Credit Suisse cuts Tata Motors to 'underperform'
India's economic growth could fall below 5 per cent in the first quarter of the current fiscal, impacted by a contraction in industrial output and deficient monsoons, global research firm Citi has said. However, TCA Anant, secretary and chief statistician
10 Aug 2012, 10:04 AM IST 
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Credit Suisse has downgraded Tata Motors to "underperform" from "neutral" after cutting its volumes forecast and increasing its tax rate assumption for the Indian auto maker's unit Jaguar Land Rover.
Credit Suisse said Tata's earnings out on Thursday were in line with expectations, but added margins for key unit JLR would decline due to increasing pricing pressures in various markets.
The investment bank cut its JLR volumes forecast for fiscal 2013 to 365,000 units from 374,000 units, while saying it assumed a tax rate for the unit of 24 percent from its previous assumption of 22 percent following management guidance.
Credit Suisse also cut its target price on the stock to Rs 218. Tata Motors shares were last down 1.9 per cent to Rs 234.80.