Tata Group stocks, known for their consistent wealth creation, are the blue-eyed boys of stock market investors. However, five largest Tata Group stocks- Tata Consultancy Services, Tata Motors, Tata Steel, Titan Company and Trent- which are also part of Nifty50 index, have crashed 16-42 per cent from their respective 52-week highs. As many as 3 stocks are in bear grip, correcting more than 20 per cent from their highs.
A muted Q3 show, dampened market sentiments and relentless selling by investors have not spared the bluest of the bluechip counters. However, a host of domestic brokerage firms are largely positive on these Tata group stocks and see a strong upside in select names. On the other hand, some have been able to fetch some negative perspectives as well.
Shares of Tata Motors have crashed over 42 per cent from its 52-week high at Rs 1,179.05 to Rs 681.60 on Tuesday with a total market capitalization of 2.5 lakh crore. The leading auto major missed the street estimates by a wide margin as the bottom line fell 22 per cent YoY to Rs 5,451 crore. However, the revenue from operations increased 3 per cent YoY to Rs 1.13 lakh crore.
Increased headwinds for legacy OEMs in China, which are likely to hit JLR ASP. However, JLR has and is likely to outperform ICE market growth through CY25- 26 in China owing to niche portfolio strategy, said Elara Capital. JLR continues to see challenges in global markets, especially in China. We had recently cut earnings for Tata Motors, it said with a 'buy' rating and a target price of Rs 909.
However, InCred Equities noted that short-term demand challenges impacted profit guidance, leading to a Ebitda cut for Tata Motors. Improvement in product mix and easing net debt provide comfort. Sharp stock dip eases forward P/BV valuation to mean level but with volatile financial performance, risk-reward ratio not yet favourable, it said with a 'reduce' rating a targe price of 661.
Shares of Trent Ltd have crashed more than 40 per cent from its 52-week high of Rs 8,345.85. The stock settled at Rs 4997.35 on Tuesday, with a total valuation close to Rs 1.8 lakh crore. The fashion and lifestyle major reported a 33 per cent YoY growth in its net profit for the December 2024 quarter at Rs 497 crore, while revenue from operations increased 34 per cent YoY to Rs 4,657 crore.
Trent’s growth, while still healthy, continues to moderate. Fashion formats clocked high-single digit SSSG in Q3. Despite the rising Zudio skew in sales, the company managed to nearly maintain Ebitda margin. The retailer added 12/58 (net) stores in Westside and Zudio respectively, said HDFC Securities. "We largely maintain our FY26/27 estimates and retain 'sell' with a target price of Rs 4,200."
However, Axis Securities remains positive on Trent as it expects robust sales growth to continue ahead of its peers, underpinned by its strategic focus on rapid store expansion and continual assortment refreshment, which should drive higher footfall. "Earnings improvement across all formats reinforces our confidence, it said with a 'buy' rating and a target price of Rs 7,100.
Shares of Tata Steel Ltd have tumbled more than 27 per cent from its 52-week high at Rs 184.60 to Rs 134.50 on Tuesday, with a total mcap of Rs 1.68 lakh crore. Tata Steel reported a 36.37 per cent YoY drop in consolidated net profit to Rs 326.64 crore during the third quarter of the current financial year. Its total revenue was down 3 per cent YoY at Rs 53,648.30 crore in Q3FY25.
Management endeavour is to transition to EAF in the UK within 3 year. The commissioning of the phased expansion of 5mtpa at Kalinganagar remains on track with the blast furnace and CAL commissioned recently, said JM Financial. "Indian operations continue to remain healthy while UK losses have peaked," it said with a 'buy' rating and a target price of Rs 175.
Tata Steel will focus on ramping up of KPO-II site, capex for 0.85mtpa Ludhiana EAF, 3mtpa TSUK EAF, rationalization activities at TSN and Jamshedpur BF relining, getting environmental clearance for 4mtpa NINL expansion, said PL Capital. "We cut FY26E/27E Ebitda estimates by 2 per cent each considering delays in TSUK breakeven," it said with an 'accumulate' rating with a target price of Rs 145.
Shares of Titan Company Ltd have dropped nearly 17 per cent to Rs 3,219 on Tuesday from its 52-week high at Rs 3,867. The consumer discretionary major reported a marginal dip of 0.6 per cent to Rs 1,047 crore in December 2024 quarter. Its net profit remained flat at Rs 1,396 crore, mainly due to the impact of customs duty reduction on gold.
Titan’s 3QFY25 performance was broadly in line with our expectations, with jewelry revenue/Ebit growth of 26 per cent/ 15 per cent YoY and adjusted margin of 11.2 per cent, said Antique Stock Broking. The reported jewelry Ebit margin was down impacted by lower realization on account of reduction in custom duty, it said with a 'buy' rating and a target price of Rs 4,184 apiece.
"With the jewelry industry seeing faster formalization, we continue to believe Titan will keep leveraging the same, driven by store additions, multi-format presence, better designs and customer understanding, and a strong recall of trust," said Motilal Oswal Financial Services, reiterating 'buy' rating with a target price of Rs 4,000.
TCS, the largest company from Tata Group, has fallen nearly 16 per cent from its 52-week high of Rs 4,585.90 to Rs 3,869.45 on Tuesday, holding a mcap of Rs 14 lakh crore. IT major's net profit for the third quarter rose 11.9 per cent YoY to Rs 12,380 crore in Q3FY25, while the revenue grew 5.6 per cent YoY at Rs 63,973 crore in the quarter concerned.
TCS reported flat revenues and increase in EBIT margin, broadly in line with estimates. Deal TCV grew sharply QoQ and YoY without any benefit of mega deals, indicating some pick-up in smaller-size deals, said Kotak Institutional Equities. "Outlook is better with various verticals in advanced stages of recovery, which sets the platform for growth acceleration in FY26," it said with an 'add' rating and a target price of Rs 4,550.
TCS sees early signs of discretionary demand recovery, based on client conversations, higher deal TCV and improving deal cycles. It expects the CY25 clients' IT budget to be similar to that of CY24, said PNB Paribas. "We cut our FY26-27E EPS by 1-2 per cent to bake in 3QFY25 results and management commentary," it said with an 'outperform' rating and a target price of Rs 4,750.