Tata Motors Ltd shares are amid a short-term correction as weak Q3 earnings and a slide in the broader market have left investors guessing whether they should buy, sell or hold the auto stock. Tata Motors shares are trading below the Rs 700 mark for the fourth straight session today, indicating weakness in the Sensex stock. The Tata Group stock closed below the Rs 700 mark for the first time on January 30, 2025 since November 2023. On November 28, 2023, the Tata Motors stock last closed below the Rs 700 level.
The stock looks weak in terms of technicals, trading below the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Tata Motors stock is trading neither in an oversold nor in overbought zone, indicates its RSI of 38.7. The stock has a one-year beta of 1.2, indicating very high volatility during the period.
Tata Motors stock was trading on a flat note in the current session. The stock stood at Rs 680.70 on BSE against the previous close of Rs 684.40 on BSE. Market cap of the Tata Group firm stood at Rs 2.50 lakh crore. The stock is down 35% in six months and fallen 24.23% in a year.
CLSA has a price target of Rs 980 on the auto stock.
Morgan Stanley has an equal-weight stance on the stock with a targte of Rs 853. Land Rover US Retail sales rose 70% YoY in January 2025 the brokerage said adding that this compares to plus 34% and plus 58% YoY in December 2024 & November 2024, respectively.
JLR in its Q3 conference call said that US sales remain strong but it sees challenges in China.
YES Securities has a price target of Rs 892 against the previous Rs 948 on the auto stock.
"We have liked Tata Motors given it’s improving India franchise, early leadership in EVs in India, and JLR’s improved profitability. However, standalone business is in the midst of cyclical volume moderation both in PV and CV whereas heightened competition in EVs can drag earnings momentum in S/A. We increase FY26/27 consol EPS by 4-5% to reflect upon PLI incentives while likely muted volumes at JLR, increased VME partially impact consolidated earnings. We maintained ADD with revised Mar’27 SOTP based target price of Rs 892 (v/s Rs 948 earlier). Despite sharp correction recently, we would still wait for better entry point," said YES Securities
Global brokerage firm Jefferies has downgraded Tata Motors stock to "underperform" from its earlier rating of "buy". The brokerage also sharply reduced its price target to Rs 660 from Rs 930 earlier.
Its UK arm JLR faces weak demand in China and Europe, along with a rise in customer acquisition costs and higher warranty expenses, Jefferies said adding the Tata Group firm faces a slowdown in demand for both commercial and passenger vehicles. Rising competition in the electric vehicles space act is also a risk for its EV business.
Global brokerage UBS has a "sell" call on Tata Motors with a price target of Rs 760.
UBS said the company's commentary for the fourth quarter is ambitious amid an uncertain financial year 2026 and 2027. China recovery is the key for JLR to deliver 10% EBIT margin in the next financial year.