Tata Motors stock slips 43% from 52-week high, is it a value buy?

Shares of Tata Motors have slipped 43% from their 52 week high in seven months. The stock hit its 52 week high of Rs 1179.05 on July 30, 2024. In the short term, the stock has delivered negative returns. It has lost 36% in six months and fallen 26% in a year. However, analysts and brokerages are not that bearish on the Tata Group stock. 

Jigar Patel from Anand Rathi said, "Support will be Rs 660 and resistance at Rs 690. A decisive move above the Rs 690 level may trigger a further upside to Rs 720. The expected trading range will be between Rs 660 and Rs 720 in the short-term." 

Another analyst sees the stock at Rs 751 in the near term. 

AR Ramachandran, SEBI registered Independent analyst says, "Tata Motors is slightly bullish on the Daily charts with strong support at Rs 667. A Daily close above resistance of Rs 694 could lead to a target of Rs 751 in the near term."

Incred Equities has assigned a reduce rating with a price target of Rs 661 to the Tata Motors stock. 

In the current session, Tata Motors stock was trading 1.49% higher at Rs 691 on BSE. Market cap of the Tata Group firm stood at Rs 2.54 lakh crore. 

The stock looks weak in terms of technicals, trading below the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Tata Motors stock is trading neither in an oversold nor in overbought zone, indicates its RSI of 38.7. The stock has a one-year beta of 1.2, indicating very high volatility during the period.

Global brokerage CLSA has given a rating upgrade to the auto stock as it believes an adverse near-term outlook has given scope to enter the counter at favourable valuations. It has assigned an outperform rating to Tata Motors stock with a price target of Rs 930, an upside of 36%. 

Emkay Global has given a target price of Rs 950 on the stock. 
Motilal Oswal has a price target of Rs 755 on the auto stck. 

"We expect margin pressure to persist at JLR over FY24-27E, given: weak demand in key regions, rising cost pressure as it invests in demand generation, and EV ramp-up, which is likely to be margin-dilutive. Even in India, both CV and PV businesses are seeing a moderation in demand. For lack of any triggers, we reiterate our Neutral rating with a Dec’26E SoTP-based target of Rs 755," MOFSL said post Tata Motors' Q3 results.