TVS Motor share price falls over 6% as Coronavirus outbreak hits supply of components. TVS Motor share price fell in early trade today after the Chennai-based automaker said it expects a 10% fall in February production as the supply of components used in vehicles is being hit by the Coronavirus epidemic. Share price of TVS Motor fell up to 6.34% to Rs 409.75 against previous close of Rs 437.50 on BSE.
The large cap stock has lost 4% in last two days.
TVS Motor Company stock has lost 7.31% during the last one year and fallen 8.15% since the beginning of this year. TVS Motor share price is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
10 of 38 brokerages rate the stock “buy” or ‘outperform’, seven “hold”, 12 “underperform” and 9 “sell”, according to analysts’ recommendations tracked by Reuters.
The outbreak of Coronavirus has led to impact on supply of certain components for the production of BS-VI vehicles, said TVS Motor.
Some Tier II suppliers have been hit by spreading of Coronavirus outside China which has led to impact on supply of certain components for production of BS-VI vehicles, the firm said in a communication to bourses.
TVS, the third-largest maker of two-wheelers in India, is also exploring suppliers in other regions and is looking to localise its supplies within India, it added.
Global firms, including Apple Inc, have warned that the spread of the epidemic in China, the world’s second-largest economy and a big manufacturing hub, is disrupting global supply chains and hurting profits as factories and shops shut operations.