Tata Motors shares jumped 9% in 2 days to top Rs 700 mark; is this stock ready for more upside?

Shares of Tata Motors Ltd continued their strong upward move for the second consecutive session in Thursday's trade. The stock climbed 3.45 per cent to hit a high of Rs 704. At this price, it has surged 8.68 per cent in just two trading days.

A few market experts suggested that Tata Motors stands to benefit from the Free Trade Agreement (FTA) between India and the United Kingdom (UK). Prime Minister Narendra Modi announced the conclusion of the FTA with London, along with a Double Contribution Convention. This treaty implies that automotive tariffs will fall from 100 per cent to 10 per cent under a quota, as per the FTA.

"Tata Motors will be a clear beneficiary of the FTA agreement between India and the UK. Investors should accumulate in the Rs 680-700 range. Expected near-term targets would be Rs 780-820," Sebi-registered analyst Mitesh Panchal told Business Today.

"The FTA agreement will boost strategic and economic ties between India and the UK, making imports cheaper. Further, this agreement may also facilitate Tata Motors' arm JLR's export of electric vehicles (EVs) from the UK to India. Also, JLR is planning to set up its plant in Tamil Nadu, which will co-develop models for both domestic and international markets," said Rajesh Sinha, Senior Research Analyst at Bonanza.

"Valuations look attractive from a medium- to long-term view. Those holding should continue with their positions and accumulate it on dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

The automaker attracts around 67 per cent of its revenues from JLR while JLR gets nearly 27 per cent volume from China. Tata Motors recently announced that its shareholders have approved the company's plan to split its automotive business into two listed entities, separating its passenger and commercial vehicle businesses. This proposal will give shareholders equal stakes in both listed entities.

As of March 2025, promoters held a 42.58 per cent stake in the Tata Group company.