** Tata Motors Ltd drops as much as 2.9 pct to 427.3 rupees

** Co warns of challenges ahead for its flagship British unit Jaguar Land Rover (JLR)

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** JLR expects sales in the UK and United States to soften because of competition but is confident of growth in China, it said after announcing a three-fold jump in profit

** "Q2 results were materially better than our and consensus forecasts. Now need overall volume growth to recover (+6.5 pct YTD) for the next leg of performance," Deutsche Bank analysts write in a note

** Risks remain around new model failures and a sharp deceleration in pricing, Deutsche Bank says; keeps "buy" rating, price target of 490 rupees

** Deutsche Bank lowers JLR volume forecasts by 2 pct to factor lower-than-expected growth in 1HFY18

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** Twenty-four of 38 brokerages rate the stock "buy" or higher, 10 "hold" and 4 "sell" or lower; median PT is 482.50 rupees - Thomson Reuters Eikon data

** Stock down 6.8 pct this year as of Thursday's close