Tata Motors Shares Fall 43%: Buy, Sell, or Hold?

Tata Motors shares have dropped 43% from their peak of ₹1,179 in July last year. The decline is due to weak demand for Jaguar Land Rover (JLR) in key markets and domestic commercial and passenger vehicles. Additionally, potential US import tariffs on European cars could impact JLR sales, which make up 25% of its retail sales in the US.

Analysts suggest that Tata Motors shares have important support near the ₹630-₹640 zone. They recommend holding or accumulating the stock at lower levels, with a potential target of ₹850-₹900 in the next 18 months. The company’s domestic car and commercial vehicle businesses are performing well, and there are plans to make the balance sheet debt-free.

CLSA recently upgraded Tata Motors to a high-conviction outperform stock, with a target price of ₹930. This implies a 25% upside potential. Out of 34 analysts covering the stock, 20 have a “buy” rating, nine say “hold,” and five recommend “sell.”

Despite the recent correction, Tata Motors’ long-term prospects remain positive, making it a potential buy for long-term investors.