Tata Motors shares slump 28% in a year; is it time to buy or stay cautious?

Shares of Tata Motors Ltd slipped 0.31 per cent on Monday to close at Rs 713.05, extending their one-year decline to 27.86 per cent. The automaker recently struck a €3.8 billion (approx. $4.3 billion) deal to acquire Italian truck maker Iveco, in partnership with the Agnelli family, Iveco's key shareholders.

The move aims to create a global commercial vehicle (CV) powerhouse with a stronger international presence, marking Tata Motors' largest overseas acquisition since its $2.3 billion buyout of Jaguar Land Rover (JLR) in 2008.

Meanwhile, Tata Motors plans to demerge its commercial vehicle business from the passenger vehicle arm by year-end.

Technically, analysts hold mixed views on Tata Motors for the near term. One projects an upside to Rs 760, another cautions of a dip to Rs 664 if support fails, while a third recommends buying above Rs 725 for targets of Rs 795–815.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said Tata Motors has broken out after a long consolidation phase, indicating a bullish outlook. He noted that Rs 700–690 levels could act as support, while the stock has room to climb towards Rs 750–760 in the near term.

Sebi-registered analyst AR Ramachandran, however, pointed out a slightly bearish trend on daily charts, with strong resistance around Rs 723. He cautioned that a daily close below Rs 702 might drag the stock down towards Rs 664.

Meanwhile, Kunal Kamble, Senior Technical Research Analyst at Bonanza, observed that a breakout above Rs 725 can be seen as a buying opportunity. He highlighted positive volume activity and suggested fresh positions above 725 with a stop loss at 690, targeting Rs 795–815.

As of June 2025, promoters held a 42.57 per cent stake in the company.