Tata Motors shares faced selling pressure due to a weak demand outlook for Jaguar Land Rover (JLR) in key markets, as well as declining demand for domestic Heavy Commercial and Passenger Vehicles in the 2025-2026 financial year.
Tata Motors Shares Down 43% from Peak – Is It the Right Time to Buy? Analysts Weigh In
Tata Motors Ltd. shares fell 43% from a record high of ₹1,179 in July last year, reaching a 52-week low on Tuesday, February 25.
The stock has been under selling pressure due to a negative demand expectation for Jaguar Land Rover (JLR) in major regions as well as domestic Heavy Commercial and Passenger Vehicles for the fiscal year 2025-2026.
Furthermore, the potential of import taxes from the European Union being introduced in the United States, which would have an impact on JLR sales in the country, added to the strain. The US market accounts for 25% of JLR’s retail sales.
Given the stock’s huge correction, is it smart to accumulate at lower levels? Here’s what analysts suggest:
Tata Motors’ stock is currently trading at levels last seen in September-October 2023, having retraced nearly 50% from its all-time high. According to Ashish Kyal of Waves Strategy Advisors, the stock has strong support around the ₹630-₹640 range, which should hold. He recommends holding the stock and accumulating at lower levels, with an expected long-term recovery toward ₹850-₹900 over a horizon of at least 18 months.
Gaurang Shah of Geojit Financial Services remains optimistic, citing that Tata Motors’ domestic car sales are performing well, and the commercial vehicle business is also showing strength. He highlighted the potential benefits of JLR production at the Sanand plant, which could lead to lower model prices. Additionally, reports suggest that Tata Motors may spin off its commercial vehicle business into a separate entity, and management has hinted at making the balance sheet debt-free. Given these factors, he believes downside risks are limited and recommends holding the stock for long-term gains.
Last week, CLSA upgraded Tata Motors, adding it to its high-conviction outperform list. The firm noted that at the current price, JLR’s implied share value stands at ₹200 per share, significantly below their target valuation of ₹450, offering a strong buffer against potential US tariff hikes.
Among 34 analysts covering Tata Motors, 20 have a “buy” rating, nine recommend “hold,” and five suggest “sell.” The consensus price target indicates a potential 25% upside.
As of now, Tata Motors share Price is trading 0.3% lower at ₹666.
