Tata Motors, an automobile giant of Tata Group, witnessed a positive week during the January 13th to 17th session, rising by more than 1.3% on BSE. However, the stock continues to be near its 52-week low. At the latest, on the opening day of Bharat Mobility Global Expo (Auto Expo) 2025 on January 17, Tata Motors unveiled a bold array of ultra-modern vehicles, cutting-edge concepts, advanced aggregates and intelligent digital solutions. Should you buy the stock?
Tata Motors Share Price:
After market hours of January 17, Tata Motors share price stood at Rs 779.40 apiece on BSE, up by 0.65% with a market cap of Rs 2,86,906.87 crore. The stock is now Rs 61.4 away from its 52-week low of Rs 718 apiece.
Tata Motors' weekly performance is up by 1.4% on BSE, while year-to-date, the stock has zoomed by 4.02%.
Tata Motors Auto Expo 2025:
As per the main statement, on January 17, with the biggest display of over 50 exhibits, Tata Motors showcased its vision for transforming every segment of personal mobility and commercial transportation.
From compact cars and powerful SUVs to nimble mini trucks and rugged heavy-duty carriers; Tata Motors presented its next-gen, green mobility solutions, designed to elevate the safety, deliver exceptional performance, and redefine the customer experience. These stunning exhibits are on display up to 22 January 2025, in Hall No.1 at the Bharat Mandapam (Pragati Maidan), New Delhi, it said.
N Chandrasekaran, Executive Chairman, of Tata Sons and Chairman, of Tata Motors said, "At the Bharat Mobility Global Expo 2025, we are proud to unveil more than 50 next-generation vehicles, visionary concepts, and intelligent solutions that redefine the future of mobility across segments and applications. Rooted in our legacy of trust, innovation, and responsibility, we will continue to lead the way- creating value for customers, driving the automotive industry and advancing our nation's progress with purpose and determination."
Should You Buy Tata Motors Share Price?
As per the Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. EPS is expected to reduce by 28.3% in FY25. The 1-year average target price is at Rs 949.73 apiece on BSE, which signalled a potential 22% upside ahead.
However, at the latest, brokerage HDFC Securities has recommended REDUCE on Tata Motors.
HDFC Securities note said, "Demand for JLR is facing the impact of slowing global macros. We have seen peers like Mercedes, BMW, etc. downgrade their guidance in recent times. While JLR continued to maintain its guidance, there is little room left now to absorb any further slowdown in demand. VME (Variable Marketing Expense) for JLR continues to rise on the rundown of the Jaguar portfolio and those Land Rover models at the later stage of their lifecycle. However, it could continue to rise further to arrest the slowing demand, which would further limit the scope for margin expansion. "
Furthermore, the brokerage added, "The India PV business continues to face headwinds of an ageing portfolio, roll back of e-PV subsidies, and slowdown in urban demand. However, the company has new launches planned in CY25 like the Harrier and Sierra. The CV segment of the company has witnessed a longer period of industry slowdown starting from the general elections followed by heat waves, monsoons, and delayed withdrawal of monsoons. Even post that, jmprovement in construction and infrastructure activities continues to be slower, though the government is taking active steps to revive them."
"We believe that the next CV cycle will reset the base higher for the company's CV segment margins due to the changing operating landscape and slightly declining competitive intensity in the industry. We believe that more of the risks are now getting priced in, in the recent correction, though we continue to remain cautious on the JLR business considering demand slowdown as well as consumer acceptance risk of the revamped Jaguar models. We value the company on a SOTP basis for a target price of Rs 712. We assume coverage with a REDUCE rating," the brokerage said.
Going ahead, a board meeting of directors of Tata Motors is scheduled to be held on Wednesday, January 29, 2025, inter alia, to consider and approve the Audited Standalone Financial Results and Unaudited Consolidated Financial Results (with Limited Review) for the third quarter and nine months ended December 31, 2024.
Also, the company is planning the demerger of Tata Motors into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity. The demerger ratio is 1:1, which means that shareholders of Tata Motors will have identical shares in both the listed companies. The demerger is expected to be completed by March 2025.
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