Tata Tech shares fall for sixth straight day, brokerages start covering with 'sell'

Tata TechThe company's shares fell sharply at the start of trading on Thursday after major brokerages began trading the company's shares.

what happened: Goldman Sachs is Tata Group The firm has rated the stock as “sell” and set a target price of Rs 900, implying a potential downside of 12% from the recent closing price of Rs 1,027.

Global brokerages have been weighing Tata Tech's earnings outlook, particularly as it is a key client. Vinfast“Tata Tech is expected to see a decline in its earnings in the near future. The investment bank also highlighted that Tata Tech is more dependent on anchor customers than its peers, which could adversely affect the company's earnings stability and make it more vulnerable to shifts in customer trends,” it said.

Also read: Tata Motors shares rise in next two days, brokerage predicts up to 20% rise

Goldman Sachs said the company's ties with Tata Motors and Jaguar Land Rover, which account for 30% of its sales, could make it difficult to expand its customer base in the future.Analysts also noted that long-term research and development (R&D) spending in the emerging aerospace sector has been subdued in recent cycles, contributing to Goldman Sachs' cautious outlook on Tata Technologies.

The company's shares have come under downward pressure since its blockbuster IPO, falling more than 15% in the past six months and now on a six-day losing streak.

Price Trends: Tata Tech shares fell 1.71 per cent to trade at Rs 1,009.95 shortly after the market opened on Thursday.

Read next: Macquarie is bullish on private banks, HDFC Bank is top pick