Why Tata Motors is stock pick of the week despite current underperformance

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Improving fundamentals helped Tata Motors post massive outperformance during 2020. However, Tata Motors is underperforming the market in 2021; mostly because the ongoing semi-conductor chip shortage is taking a big toll on its JLR production. For instance, JLR’s production for the first quarter of 2021-22 was down by around 30,000 units—around 27% lower than the normalized potential for the quarter—due to semiconductor supply constraints. Tata