Shares of Tata Motors recommenced their downward move in Monday's trade after a single-day halt. The stock fell 3.41 per cent to hit a day low of Rs 814.85. It was last seen down 2.44 per cent at Rs 823. At this price, the scrip has declined 18.98 per cent in the past six months.
The automotive manufacturer reported total sales of 82,682 vehicles in October 2024, showing a marginal decline from 82,954 units in the same month last year. The company's domestic commercial vehicle (CV) segment saw a slight uptick of 1 per cent, with sales reaching 32,708 units compared to 32,488 units in October 2023. Within the CV segment, passenger carriers showed the strongest growth at 13 per cent, while heavy commercial vehicle trucks declined by 2 per cent.
In the passenger vehicle (PV) segment, domestic sales reached 48,131 units, nearly unchanged from 48,337 units in the previous year. Electric vehicle (EV) sales, which are included in the PV segment, experienced a 2 per cent decrease, with 5,355 units sold compared to 5,465 units in October 2023.
"The stock has been facing selling pressure due to soft auto sales. Investors with a longer-term horizon can hold on to Tata Motors as China's stimulus package could have a positive impact on JLR (Jaguar Land Rover) sales," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. The automaker attracts around 67 per cent of its revenues from JLR while JLR gets nearly 27 per cent volumes from China.
On technical charts, the counter looked 'weak'. "Tata Motors share price is looking weak on daily charts and it can slip towards Rs 750 level," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"The current price structure is characterized by a formation of lower highs with no indications of recovery. We advise against bottom fishing the stock at its current valuations," Kushal Gandhi, Technical Analyst at StoxBox, suggested.
The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 26.90. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 30.57 against a price-to-book (P/B) value of 10.30. Earnings per share (EPS) stood at 27.59 with a return on equity (RoE) of 33.69. Promoters held a 42.58 per cent stake in Tata Motors during the September 2024 quarter.