Tata Motors shares slumped nearly 20 percent to hit a seven-year low of Rs 170.65 on Tuesday after its unit Jaguar Land Rover reported a 12.3 percent drop in global sales.

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The stock plunged nearly 62 percent from its 52-week high of Rs 468 and traded below 20-day, 50-day, 100-day and 200-day moving averages. In the last five days, Tata Motors stock has erased more than 23 percent of its stock value.

The stock plunge comes after luxury brand Jaguar Land Rover reported retail sales at 57,114 cars in September, down 12.3 percent from a year ago. The company also said it would stop production at the Solihull plant in the UK for two weeks.

"Customer orders in the system will not be impacted and employees affected will be paid for the duration of the shutdown," Tata Motors said in a statement.

Brokerage firms are cautious on the stock and highlight concerns such as continuing slowdown in retail sales and global developments like Brexit weighing on JLR operations.

Morgan Stanley has maintained 'equal-weight' rating on the stock at a target price of Rs 339.

Sharekhan too maintained a ‘neutral’ stance on the stock. Analyst Bharat Gianani wrote in the note that he was cautious on Tata Motors due to the impact of Brexit on JLR operations and the company's finances going forward.

“We have been cautious on the stock and we have been maintaining a neutral stance since the Brexit has happened. We had downgraded the stock and we continue to remain cautious,” Gianani said.

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First Published:Oct 9, 2018 2:53 PM IST