Shares of Tata Motors Ltd recorded a sharp drop in Thursday's trade, in line with the most automobile stocks after US President Donald Trump announced a 25 per cent tariff on all imported vehicles and parts.
The stock slumped 6.58 per cent to hit a day low of Rs 661.35. It was last seen trading 5.32 per cent lower at Rs 670.30. At this price, the scrip has slipped 32.49 per cent in the last six months.
A few analysts said support on the counter could be seen at Rs 650, followed by Rs 615 and Rs 610 levels. One of them suggested buying it around Rs 630 level while another said Tata Motors is poised for a decent bounce back.
"Tata Motors gave range breakout above Rs 670-680 levels on a monthly and the stock has taken support near the Rs 615-610 range. One can buy it but at lower levels of around Rs 630," Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services, told Business Today.
"The stock has been beaten blue and black all through. With the rate cuts in Europe and China's JLR (Jaguar Land Rover) sales picking up, it is poised for a good bounce back. An upmove of 20-25 per cent is on the cards based on the upcoming fourth quarter (Q4 FY25) results." said Dharmesh Kant, Head of Equity Research at Cholamandalam Securities. The automaker attracts around 67 per cent of its revenues from JLR while JLR gets nearly 27 per cent volumes from China.
"The subzone of Rs 650 is likely to cushion any shortcomings in the near period. Conversely, sustainable buying beyond the Rs 725 zone could provide fresh momentum in the counter, resembling a counter trend for higher potential targets around Rs 770-800 levels in the near future," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
The counter traded higher than the 20-day and 30-day simple moving averages (SMAs) but lower than the 5-day, 10-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 46.46. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock has a price-to-equity (P/E) ratio of 39.83 against a price-to-book (P/B) value of 8.06. Earnings per share (EPS) stood at 16.84 with a return on equity (RoE) of 20.24. According to Trendlyne data, Tata Motors has a one-year beta of 1.2, indicating high volatility.
As of December 2024, promoters held a 42.58 per cent stake in the home-grown carmaker.