Tata Motors Shares Trade Below 700 Mark for the 4th-Straight Session, Should You Buy, Hold or Sell?

Shares of Tata Motors are witnessing a short-term correction amid weak Q3 earnings and a slump in the broader market, which has in turn left investors in a tizzy as to whether to buy, sell or hold the auto stock. Tata Motors is trading below the 700 mark for the fourth consecutive session. The stock closed below the Rs 700 mark for the first time on January 30, 2025 since November 2023.

If we look at the technical parameters, the stock is trading below the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Being neither in an oversold nor in an overbought zone, it indicates its RSI of 38.7.

Shares of Tata Motors were trading on a flat note on February 13. The stock was trading at ₹680.70 against previous day’s close of ₹684.40 on BSE. Market capitalisation of the auto major stood at ₹2.50 lakh crore.

CLSA set a target price of ₹980 on the auto stock, while Morgan Stanley opined an equal-weight stance on the stock with a target price of ₹853.

Retail sales of Land Rover soared by 70% YoY in January 2025 as compared to plus 34% and plus 58% YoY in December 2024 & November 2024, respectively, Morgan Stanley said.

In its earnings call, JLR said that U.S. sales remained strong while China witnessed several challenges.

YES Securities has a price target of ₹892 against the ₹948 previously.

The brokerage said, “We have liked Tata Motors given it’s improving India franchise, early leadership in EVs in India, and JLR’s improved profitability. However, standalone business is in the midst of cyclical volume moderation both in PV and CV whereas heightened competition in EVs can drag earnings momentum in S/A. We increase FY26/27 consol EPS by 4-5% to reflect upon PLI incentives while likely muted volumes at JLR, increased VME partially impact consolidated earnings. We maintained ADD with revised Mar’27 SOTP based target price of Rs 892 (v/s Rs 948 earlier). Despite sharp correction recently, we would still wait for better entry point.”

Meanwhile, Jefferies downgraded the stock to “underperform” from “buy”, thereby reducing the target price to ₹660 from ₹930 earlier.