Tata Elxsi, Titan hit 52-week lows; Opportunity to buy?

Indian markets witnessed their sharpest single-day decline in a month, dragging multiple stocks to 52-week lows. Notably, two of the three stocks hitting their lowest levels on the Nifty 200 index—Tata Elxsi and Titan Company—belong to the Tata Group. The third, Sona BLW Precision Forgings, also saw a significant drop, plunging to ₹455.30 on the NSE.

Tata Stocks Under Pressure

Tata Group stocks have collectively lost ₹3.3 lakh crore in market capitalization in 2024, with Tata Consultancy Services (TCS) alone shedding ₹2 lakh crore. Analysts remain bearish on Tata Elxsi, while Titan faces short-term revenue challenges.

Auto and auto ancillary stocks have been particularly affected by U.S. President Donald Trump’s recent announcement of a 25% tariff on automakers, effective April 2. Shares of Sona BLW have lost nearly 10% over the past week in response to these developments.

Stock Performance and Market Movement

Bangalore-based Tata Elxsi closed Tuesday’s session at ₹5,069.60, down 3%, while Titan declined by a similar margin to settle at ₹2,986.95. Since January, Tata Elxsi has dropped 25%, more than halving from its record high of ₹10,760.40 in August 2022. As a result, the number of analysts recommending a "sell" on the stock has risen to 71%, up from 60% a year ago.

Titan, the second-largest company in the Tata Group with a market capitalization of ₹2.7 lakh crore, contributes 9.6% to the group’s total valuation. Analysts at Ambit anticipate weaker revenue growth momentum for its flagship jewelry brand, Tanishq, in February and March. "While the long-term growth outlook for the sector remains positive, near-term revenue pressures and uncertainty around EBITDA margin recovery make Titan’s 50x FY27E P/E valuation appear expensive," Ambit noted in an investor report.

Tata Group Faces Market Capitalization Erosion

The Tata Group, India’s largest conglomerate, commands a total market valuation of ₹27.6 lakh crore. However, since the start of 2024, the group has seen a significant erosion of ₹3.3 lakh crore. Apart from TCS’s massive losses, both Tata Motors and Titan have shed nearly ₹25,000 crore in market capitalization during the same period.

Broader Market Trends

The NSE 200 Index fell 1.3% on Tuesday, its biggest single-day drop since February 28, closing at 12,809.30—down 173.45 points. Among its constituents, 142 stocks closed in the red, while only 58 ended in positive territory.

As markets remain volatile, investor sentiment continues to be shaped by global trade policies and domestic economic factors. The coming weeks will be crucial in determining whether Tata Group stocks can stage a recovery or face further downside pressure.

Disclaimer: Always consult a qualified financial expert before making any investment or financial decision to ensure informed and responsible choices.