Tata Motors’ shares went down by 2.3% on Monday, now priced at Rs 606.2 on the BSE. This drop happened after the company announced an 8% drop in total sales for February compared to last year.
In February, Tata Motors sold 79,344 vehicles, down from 86,406 last year. Its domestic sales also fell by 9%, totaling 77,232 units. The sales of passenger vehicles, which include electric cars, went down by 9% to 46,811 units. Meanwhile, total sales of commercial vehicles decreased by 7% to 32,533 units.
Tata Motors has been struggling for a while, with its stock losing 42% in the last six months and 15% this year. Investors are worried about decreasing demand for its luxury brand, Jaguar Land Rover, especially in China and the UK, along with general market ups and downs.
The company’s shares have dropped 47% from their highest price of Rs 1,179.05 in July 2024, and in the previous session, it hit a new low of Rs 618.45. Technical signs suggest that the stock may continue to decline, as it is trading lower than key moving averages. Its Relative Strength Index (RSI) is at 26.3, indicating it is time for a turn-around.
Even though the stock is falling, some experts think it could be a good investment for the long-term. CLSA recently moved the stock rating to ‘high conviction outperform,’ saying it looks cheap now and could recover in the future, with a target price of Rs 930. However, BNP Paribas still rates it as ‘outperform’ but cautions about immediate challenges in 2025.
Once a top-performing stock in the Nifty 50, Tata Motors is now one of the worst performers as it faces lower sales, more electric vehicle competition, and difficult market conditions.