Tata Motors Share Price: Tata Stock Hits 52-Week Low, Buy?

Tata Motors Share Price today witnesses steep decline of 6.41% on Bombay Stock Exchange (BSE) to Rs 703.95 per share after the company reported sharp fall in its Q3 consolidated net profit on January 29, 2025. The stock is now trading just 2.8% away (if current market price of Rs 703.95 is taken into consideration) from its 52-week low price of Rs 684.25 apiece. Tata Motors shares also hit fresh 52-week low in trade today after lukewarm financial results that missed analyst estimates.

The scrip slipped 9.16% in last 2-weeks and tumbled 18.13% in last 1-year. The company has a market cap of Rs 2,58,948.73 crore, according to BSE. Its return on equity (ROE) is 20.24%. It is worth mentioning that Life insurance corporation of India (LIC) has 2.54% stake in the company reduced from September 1, 2024 quarter from 2.58%. Check key details below:

Tata Motors Shares Performance

The 52-week high price of Tata Motors shares on BSE stood at Rs 1179.05 per share (as on 30/07/2024) and 52-week low price is Rs 684.25 apiece (as on 30/01/2025), respectively. Tata Motors shares tanked 39.47% in last 6-months, gained over 58% in last 2-years, and surged 277.82% in last 5-years.

Tata Motors shares have now slipped 40.3% (if current share price of Rs 703.95 is considered) from 52-week high price of Rs 1179.05 per share.

Tata Motors Dividend History

TAMO recommended a total of 18 dividends since July 3, 2002. In last 1-year, the auto giant recommended an equity dividend amounting to Rs 6.00 per share. At the current share price of Rs 703.95 apiece, Tata Motors offers a dividend yield of 0.85%.

Should You Buy Tata Motors Shares?

Jefferies sought to downgrade Tata Motors shares (after three and a half years) from buy to underperform after the firm declared Q3 results. The analyst slashed the target price for Tata Motors to Rs 660 per share. The analyst said, JLR faces weak demand in china & europe, rising customer acquisition cost & higher warranty expense.

ICICI Securities preferred to upgrade Tata Motors shares to add from sell with a DCF-based reviewed price target of Rs 831 (from Rs 923), indicating 11x/2.4x FY27E India/JLR EV/EBITDA.

“With JLR’s supply chain issues normalizing and volumes recovering, we expect EBITDA margins to improve to ~16%/17% levels in FY26E/FY27E. Tata Motor’s domestic CV business is expected to see a gradual pickup with an increase in government infra spending, and the domestic PV business should see growth supported by new launches,” added ICICI Securities.

Meanwhile, brokerage firm Motilal Oswal maintained neutral stance on Tata Motors with a December 2026 estimated SoTP based target price of Rs 755.

Tata Motors Q3 Results

The company on January 29, 2025 reported a sharp decline of 22% year-on-year (YoY) in the consolidated net profit for the Q3FY25 to Rs 5451 crore as performance was weighed down by sluggish margins and tepid Jaguar Land Rover (JLR) volumes even after sequential improvement. The large cap automaker declared the company’s revenue from operations zoomed slightly by 27% YoY to Rs 1,13,575 crore amid growth in overall sales. EBIT of Tata Motors declared at Rs 10,000, indicating a growth of 60 basis points.

PB Balaji, Group Chief Financial Officer of Tata Motors, said, “the overall demand in Q3 is not as expected. The festive season was healthy but after that, the demand was impacted. Tight liquidity is one of the factors. However, we expect underlying domestic demand to improve gradually on account of infrastructure spending, product launches and stable interest rates.”

Disclaimer

The stock has been picked from the brokerage report of Jefferies, ICICI Securities, and Motilal Oswal. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.