Tata Motors Share Falls 2.89%, Hits 52-Week Low, M-Cap Falls To Rs. 2.64L Cr; A Buying Opportunity?

Shares of Tata Motors opened on a positive note this morning, showing initial strength and optimism among investors. However, the stock experienced a sharp decline, and it hit its 52-week low range of Rs. 711.65 intraday.

Tata Motors Shares Performance

On January 27th, Tata Motors shares were trading at Rs.712.90, with a 2.89% decline in share prices at the time of writing. The stock opened at ₹732.95 and dropped to a 52-week low of ₹711.65 during the session. Over the past week, Tata Motors shares have experienced a decrease of approximately 8.6%. Additionally, the stock has seen a significant decline of around 36% over the past six months, despite posting strong Q3 financial results.

Tata Motors Share Price Target

According to TrendyLine, the consensus target price for Tata Motors shares is set at Rs. 717.60 to Rs. 949.73, with a recommendation to "buy," indicating a potential upside of 32.35%. This suggests that analysts are optimistic about the stock's potential for growth in the coming months.

On the other hand, Motilal Oswal has provided a "Neutral" rating for Tata Motors, with a target price of Rs.810, which represents a slight 2% upside from the current market levels. The stock is currently trading at a price-to-earnings (P/E) ratio of 12.1x for FY25E and 13.4x for FY26E, based on consolidated earnings per share (EPS). Motilal Oswal has reiterated its "Neutral" stance on Tata Motors, with a December 2026 estimated sum-of-the-parts (SOTP)-based target price of Rs.810. The brokerage notes that while Tata Motors has strong growth prospects, it remains cautious due to certain market factors, leading to its neutral outlook.

Tata Motors Q3 FY2025 Financial Results

Tata Motors has released its financial performance for the October-December quarter of fiscal year 2023-24 (Q3 FY24).The company reported a remarkable 137.5% surge in its consolidated net profit, which reached Rs. 7,025.11 crore, a significant increase from Rs. 2,958 crore in the same quarter of the previous year.

In terms of revenue, Tata Motors saw a solid 25% year-on-year growth, with total revenue from operations rising to Rs. 110,577 crore, up from Rs. 88,488.59 crore in Q3 FY23. On the operating side, Tata Motors EBITDA also saw a sharp rise of 59%. The company's EBITDA for the third quarter of FY24 stood at Rs. 15,333 crore, compared to Rs. 9,644 crore in the corresponding period last year.

Motilal Oswal, in its research report, said, "Tata Motors Ltd. (TTMT)'s stock has corrected 32% from its peak, largely driven by muted growth estimates across underlying industries and cost-related pressure, particularly in JLR. While management has maintained its guidance for JLR during 2QFY25 results, we think it is likely to see persistent margin pressure over FY 24-27, given weak demand in key regions and the rising cost pressure as it invests in demand generation along with normalizing mix and lastly EV ramp-up, which is likely to be margin-dilutive."