Tata Motors share price plunges 2%, falls to 52-week low; do you own?

Tata Motors share price fell over 2 per cent to a fresh 52-week low of ₹662.10 in Tuesday's trading session. At 1:00 pm, Tata Motors stock was trading at ₹662.15 apiece on the National Stock Exchange (NSE).

Tata Motors shares continued to trade in red for the second consecutive session. The stock has fallen over 44 per cent from its 52-week high of ₹1,179.05, recorded on July 30, 2024.

Over the past six months, it has declined by 39 per cent and registered a 29.07 per cent drop over the past year. Growing concerns about JLR's business and weaker-than-expected Q3 earnings have negatively impacted the stock in the short term.

Mass exodus at Tata Motors

Meanwhile, Tata Motors has experienced a fresh setback following the exit of multiple senior executives amid its operational restructuring. The company is splitting its car and truck manufacturing divisions to strengthen competitiveness in each segment and optimize value.

Mint earlier reported that at least half a dozen exits have taken place since August which were all in the ranks of team heads or above.

The list includes Biswaroop Mukherjee, former head of human resources for the commercial vehicles division; Anurag Mehrotra, who served as vice president for international business and strategy; Vinay Pant, the chief marketing officer for passenger vehicles; Vinay Pathak, responsible for product planning and program management in the commercial vehicles segment; Sampada Inamdar, head of training and development; and Devendra Katiyar, the chief safety officer.

In March 2024, Tata Motors announced its plan to divide its operations into separate Passenger Vehicle (PV) and Commercial Vehicle (CV) divisions. As part of this restructuring, the company is carrying out a talent-mapping exercise to reallocate senior executives overseeing shared business functions to one of the newly established entities.

Should you buy or sell Tata Motors shares?

Brokerage firm Elara Securities has maintained a ‘buy’ rating for Tata Motors stock, with a target price of ₹909 apiece, suggesting a 21 per cent upside.

“JLR continues to see challenges in global markets, especially in China. JLR’s China volume contributes ~21% to sales (13% ex CJLR), which is relatively lower compared with peers (at 20-40%). While JLR's EBIT margin at 9% in Q3FY25 was led by a depreciation decrease, its guidance for net debt zero for FY25 was maintained, which is a positive. While JLR’s near-term Q4FY25 EBIT margin outlook is 10%+, the guidance for FY26 EBIT margin at 10% will be reviewed on JLR’s Investor Day (in Q1FY26). We had recently cut earnings for TTMT in our thematic and hence maintain our TP at INR 909,” the brokerage firm said in a note.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.