Stock Performance and Market Trends
Tata Motors stock continues to experience a downturn, trading below the Rs 700 mark for the fourth consecutive session. The ongoing decline is attributed to weak third-quarter earnings and a broader market slump, leaving investors uncertain about their next move regarding the auto stock. The Tata Group stock slipped below the Rs 700 threshold for the first time on January 30, 2025, a level it had not seen since November 2023. The last instance of Tata Motors stock closing below Rs 700 was on November 28, 2023.
Technically, the stock appears weak, trading below multiple key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day levels. Despite the downward trend, its Relative Strength Index (RSI) stands at 38.7, suggesting it is neither oversold nor overbought. With a one-year beta of 1.2, the stock has demonstrated high volatility. At the latest trading session, Tata Motors stock was flat, standing at Rs 680.70 on the BSE, compared to its previous close of Rs 684.40. The company’s market capitalization currently stands at Rs 2.50 lakh crore. Over the past six months, the stock has dropped 35%, marking a 24.23% decline over the past year.
Brokerage Opinions and Price Targets
Global brokerage firms have presented mixed views on Tata Motors stock, with several adjusting their price targets. CLSA has set an optimistic target of Rs 980, while Morgan Stanley maintains an equal-weight stance with a target of Rs 853. Notably, the recent surge in Land Rover’s US retail sales, which grew 70% year-over-year in January 2025, has added a layer of optimism. This follows 34% and 58% year-over-year growth in December and November 2024, respectively. However, challenges in the Chinese market have tempered expectations.
YES Securities has revised its target price downward from Rs 948 to Rs 892. While acknowledging Tata Motors’ strong position in India, early leadership in electric vehicles (EVs), and improved profitability of its subsidiary Jaguar Land Rover (JLR), the brokerage warns of a cyclical volume slowdown in both passenger and commercial vehicle segments. Additionally, increasing competition in the EV market could weigh on earnings. The firm has adjusted its FY26/27 consolidated earnings projections upward by 4-5%, factoring in Production-Linked Incentive (PLI) benefits but has maintained an “ADD” rating on the stock, awaiting a more favorable entry point.
Challenges and Downgrades
On the downside, Jefferies has downgraded Tata Motors from “buy” to “underperform,” slashing its price target from Rs 930 to Rs 660. The firm cites weak demand in China and Europe, rising customer acquisition costs, and higher warranty expenses as key concerns. Additionally, Tata Motors’ commercial and passenger vehicle segments face a potential slowdown, compounded by intensifying competition in the EV market. Similarly, UBS has issued a “sell” call with a price target of Rs 760, expressing skepticism over the company’s ambitious projections for Q4 and its financial outlook for 2026 and 2027. UBS suggests that a recovery in China remains crucial for JLR to achieve its targeted 10% EBIT margin in the next fiscal year.
With varying market sentiments, Tata Motors stock performance remains under close scrutiny, as investors navigate the evolving market landscape.
