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Tata Motors shares down 42% from peak: Should you buy the dip in this auto major's stock?
Tata Motors shares down 42% from peak: Should you buy the dip in this auto major's stock?

Time of India

time19 hours ago

  • Automotive
  • Time of India

Tata Motors shares down 42% from peak: Should you buy the dip in this auto major's stock?

Tata Motors' shares have declined 42% from their peak, prompting analysis of whether it's a buying opportunity or a value trap. Technical indicators suggest a range-bound movement, with analysts advising caution until a clear breakout occurs. The U.S.-EU tariff agreement offers potential support to JLR, but concerns remain about margin guidance and headwinds. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads JLR in focus as tariffs ease Tired of too many ads? Remove Ads Caution prevails? Once a bellwether of India's auto rally, Tata Motors now finds itself trading at a steep 42% discount to its record high. After a bruising year of tariff shocks, margin pressures, and waning momentum, the stock is testing investor patience, and tempting bargain hunters. Is this slump a value trap or a rare buying opportunity in one of India's most storied automakers From a technical standpoint, Tata Motors shares are trading at Rs 682.30, below seven of their eight key simple moving averages (SMA), with the exception of the 100-day SMA. The Relative Strength Index (RSI) is hovering at 49.9, signalling a lack of directional conviction, while the MACD remains below the centre line at - Shah, Head of Technical and Derivatives Research at SBI Securities , noted that 'the stock has been moving in a 665–710 range since 16th June. Although the Auto index is outperforming the Nifty index, this stock has been a laggard.' He said, 'The RSI has been moving in the 40–60 range, supporting the sideways movement with the stock clearly lacking momentum. The ADX line is flat which further reinforces the lack of momentum in the stock.'Shah said that 'a decisive breakout on either side of the range can provide cues about the future direction of the stock.' He pointed to Rs 665 as a key support level and Rs 710 as immediate resistance. 'Break below 665, can lead to price moving towards 635, where its prior swing low is placed… Break above 710, can lead to price moving towards 735–740 zones, where its 200 DEMA is placed currently. Momentum is unlikely unless 735–740 is successfully taken out on the upside.'Adding to the technical picture, Kunal Kamble, Senior Technical Research Analyst at Bonanza, observed that 'since June 18, 2025, Tata Motors has been trading within a well-defined range of Rs 665–Rs 700, suggesting a consolidation phase after a prior uptrend.' He said, 'The 9 & 21 EMAs are flattening, reflecting the absence of a strong directional trend. The RSI trading below 50 suggests a lack of momentum… The DMI (Directional Movement Index) remains compressed, indicating low trend strength.'Kamble said 'a decisive breakout above Rs 700 could trigger a move toward Rs 740, while a breakdown below Rs 665 may lead the stock to retest support at Rs 635.' But for now, 'it's prudent to remain on the sidelines and wait for volume-supported confirmation of a breakout or breakdown.'Anuj Gupta, Director at Ya Wealth, said, 'Broadly the trend of Tata Motors is sideways as it is trading between the support of 600 levels and resistance of 750 levels.'Gupta said, 'For a very short term it has support at 670 levels and next support at 640 levels. Resistance at 710 and strong resistance at 750 levels.' He expects 'short term trend reversal in this stock,' and said, 'Investors may start investments in the Tata Motors around 640 to 670 range. We are expecting it may test 720 to 750 levels in the next 3 to 4 months. Keep support levels as stoploss levels.'Tata Motors shares rose 2% on Monday following an announcement that the U.S. and European Union had reached a deal to avert a major tariff escalation on EU exports, reducing car tariffs to 15% from a potential 30% hike. The new agreement replaces a 25% duty on EU auto exports with a baseline 15% rate, aligning it with the rate set for Sangal, Senior Research Analyst at Bonanza, said the U.S-EU tariff agreement is 'expected to support volume growth for European automobile exporters, particularly Jaguar Land Rover (JLR), the luxury vehicle arm of Tata Motors.' He said that 'with the new deal reducing tariffs on vehicle exports from Slovakia to the United States from 27.5% to 15%, key models such as the Defender which is manufactured in Slovakia will now enjoy improved cost competitiveness in a critical market.'JLR had paused U.S.-bound shipments from its Slovakian plant in April due to higher tariffs, but resumed them in May. The North American market accounts for approximately 32% of JLR's total Sangal also flagged concerns. 'JLR trimmed its FY26 margin guidance to 5–7% (from earlier 10% guidance), primarily due to uncertainties over US tariffs.' He said, 'The company is currently facing several headwinds, like rising emission compliance and warranty costs in FY25, along with currency headwinds from USD depreciation against GBP.'At a group level, Tata Motors reported a 51% fall in consolidated net profit at Rs 8,470 crore in Q4 FY25, while revenue remained flat at Rs 1.19 lakh crore. EBITDA fell 4% to Rs 16,700 crore, with EBITDA margins slipping 60 basis points to 14%. For the same period, JLR posted £875 million in profit before tax, up from £661 million in Q4 FY24, aided by higher volumes and lower depreciation and Monday's bounce, analysts remain cautious in the near term. Kamble said, 'At this stage, it would be premature to call a trend reversal in Tata Motors, as the stock appears to be in the midst of a corrective wave.' He warned that 'the trend would only shift decisively if the stock manages to close above the swing high of Rs 745… Until that happens, bearish pressure remains intact.'Shah of SBI Securities echoed the sentiment, and said, 'Currently there are no trend reversal signs visible. The stock is moving in a tight range, forming thin body candles along the way. The momentum indicators and oscillators are further reinforcing the sideways movement in the stock.'Even as the stock remains vulnerable to further volatility, Anuj Gupta sees some cause for optimism. 'Now in India good monsoon may support the auto stock where Tata Motors may get good response due to availability in EVs segment. Upcoming festival season will also support the stock's price.'For now, Tata Motors remains range-bound and directionless, with near-term triggers hinging on sustained improvements in JLR's outlook and a breakout above key technical levels.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Tata Punch Becomes India's Fastest-Selling SUV, Crosses 6 Lakh Sales in Under 4 Years
Tata Punch Becomes India's Fastest-Selling SUV, Crosses 6 Lakh Sales in Under 4 Years

India.com

time17-07-2025

  • Automotive
  • India.com

Tata Punch Becomes India's Fastest-Selling SUV, Crosses 6 Lakh Sales in Under 4 Years

Tata Motors has achieved a major milestone with the Tata Punch becoming India's fastest-selling SUV, crossing the 6 lakh unit sales mark in under four years. Launched in October 2021, the Punch has swiftly transformed into a household name, thanks to its bold design, 5-star safety rating, and versatility across diverse driving conditions. Positioned as India's first sub-compact SUV, the Punch was created to bring the SUV experience to a wider audience. Its popularity among first-time buyers, especially in Tier 2 and Tier 3 cities, has been remarkable—with nearly 70% of Punch ICE owners being new car buyers. The car's appeal has also grown among women buyers, with 25% of owners being women, thanks to its compact footprint and elevated stance. The Punch has not only carved out a new segment but has led it with a 38% market share in FY25 and contributed 36% to Tata Motors' overall passenger vehicle sales. Available in petrol, CNG, and EV variants, it has also earned over 20 automotive awards and achieved 5-star safety ratings under both Global NCAP and Bharat NCAP. To celebrate this journey, Tata Motors has launched the 'India Ki SUV' campaign, honouring the people who have made the Punch a success story. It's not just a car—it's a cultural icon for a bold, confident India. With its continued momentum and widespread appeal, the Tata Punch is poised to shape the future of the compact SUV segment in India.

Tata Punch crosses 6 lakh production milestone in under 4 years
Tata Punch crosses 6 lakh production milestone in under 4 years

India Today

time17-07-2025

  • Automotive
  • India Today

Tata Punch crosses 6 lakh production milestone in under 4 years

Tata Motors has achieved a major milestone with its micro-SUV, the Tata Punch, surpassing 6 lakh production milestone in less than four in less than four years. Launched in October 2021, the Punch has carved a unique space for itself in the micro-SUV category, emerging as a symbol of style, safety, and practicality for a wide demographic of Indian car remarkable feat has been commemorated with a new nationwide campaign titled 'India Ki SUV', celebrating the trust and love the Punch has earned across urban and rural India alike. The campaign reflects stories of aspiration, independence, and everyday adventure, underscoring how the Punch has evolved into more than just a vehicle and how it has become a representation of ambition and bold to Tata Motors, the Punch was envisioned to bring the SUV experience within reach of every Indian. It has particularly resonated with first-time car buyers, with nearly 70% of internal combustion engine (ICE) Punch buyers being new to car ownership. The Punch has also found strong favour among women, 25% of buyers are female, thanks to its compact yet commanding stance, high ground clearance, and easy drivability. The car's widespread popularity spans India's diverse geographies, with 24% of buyers coming from Tier 1 cities, 42% from Tier 2, and 34% from Tier 3 towns. It has firmly established itself as a popular choice for young professionals, families, and adventure-seekers alike. In CY2024, the Tata Punch even became the highest-selling car in his thoughts on the milestone, Vivek Srivatsa, Chief Commercial Officer of Tata Passenger Electric Mobility Ltd., said, 'The Punch embodies the spirit of a new India — bold, self-assured, and ready to forge its own path. This milestone reflects the immense trust over 6 lakh Indians have placed in a car that stands for confidence, presence, and a fresh start.'The Punch also boasts a 5-star safety rating for both its ICE (Global NCAP) and EV (Bharat NCAP) versions, and is offered in petrol, CNG, and electric powertrains. It currently contributes 36% to Tata Motors' overall passenger vehicle sales and holds a 38% market share in the sub-compact SUV segment. With over 20 automotive awards under its belt and a 15% year-on-year growth, the Punch stands tall as a benchmark in its ahead, Tata Motors is also working on updating the Punch, as spy shots of the facelifted Punch emerged to Auto Today Magazine- Ends

Tata Motors produces over 6 lakh units of Punch within 4 years of launch
Tata Motors produces over 6 lakh units of Punch within 4 years of launch

Time of India

time17-07-2025

  • Automotive
  • Time of India

Tata Motors produces over 6 lakh units of Punch within 4 years of launch

Tata Motors ' compact SUV , the Punch , has surpassed a production milestone of 6 lakh units in less than four years since its launch in October 2021. The Punch was introduced as a sub-compact SUV aimed at providing an affordable SUV option to Indian buyers. In 2024, it became the highest-selling passenger vehicle in India, according to the homegrown carmaker. The vehicle is available in petrol, CNG, and electric powertrain options and has received 5-star safety ratings under both Global NCAP and Bharat NCAP protocols. It accounted for 36 per cent of Tata Motors' overall passenger vehicle (PV) sales and held a 38 per cent market share in the sub-compact SUV category in FY25. More first-time buyers prefer Tata Punch ICE Ownership trends show that nearly 70 per cent of ICE Punch owners are first-time buyers, while 25 per cent of owners are women, according to the company statement. Geographically, the model has a balanced spread of demand, with 24 per cent of buyers from tier-1 cities, followed by tier-2 (42 per cent), and tier-3 (34 per cent).

After Singur, a new chapter unfolds in Tata Group-West Bengal saga
After Singur, a new chapter unfolds in Tata Group-West Bengal saga

Business Standard

time13-07-2025

  • Business
  • Business Standard

After Singur, a new chapter unfolds in Tata Group-West Bengal saga

A meeting between Chief Minister Mamata Banerjee and Tata Group Chairman N Chandrasekaran has rekindled hopes of fresh investments by the group in the state that goes to polls next year Ishita Ayan Dutt Kolkata Listen to This Article A picture is worth a thousand words, it is said. The frame capturing a beaming Tata Group Chairman Natarajan Chandrasekaran as West Bengal Chief Minister Mamata Banerjee greeted him with an uttariya (a traditional stole) at Nabanna, the state secretariat, was also rich in subtext. The July 9 meeting marked the first formal engagement between a Tata Group Chairman and Banerjee, 14 years after she swept to power in 2011 on the back of a massive agitation against land acquisition that saw the dramatic exit of Tata Motors' Nano project from Singur and reshaped the state's political landscape. After the

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