Tata Motors shares slumped 37% in 6 months; here's what analysts have to say

Shares of Tata Motors settled 1 per cent lower at Rs 583 on Wednesday. At this closing price, the stock has tumbled 37.23 per cent in the last six months. The company recently said its unit Jaguar Land Rover (JLR) is evaluating various steps to respond to the tariff announced by the US on April 2, 2025. The Mumbai-based carmaker clarified that the UK-based auto major is yet to finalise a plan of action to deal with new tariffs.

"JLR is evaluating various options to suitably address impact of the increased tariff in the US market," Tata Motors stated. "There is no decision or plan of action. This is just emphasizing that JLR is evaluating various options to suitably address impact of the increased tariff in US market," it added.

Global wholesales during the March 2025 quarter (Q4 FY25) slipped 3 per cent, year-on-year (YoY), to 3,66,177 units. "Global wholesales for Jaguar Land Rover (JLR) were at 1,11,413 vehicles, higher by 1 per cent as compared to Q4 FY24. Jaguar wholesales for the quarter were at 7,070 vehicles, while Land Rover wholesales for the quarter were at 1,04,343 vehicles," it also said. (JLR figure does not include CJLR volumes, which is a JV between JLR and Chery Automobiles)

Before this, Tata's UK subsidiary JLR announced a temporary pause in shipments to the United States for April 2025. The step came after US President Donald Trump imposed a 25 per cent tariff on imported vehicles.

Tata Motors, in a separate filing, said, "Compared to the prior year, JLR's wholesale volumes for the fourth quarter were higher in North America (14.4 per cent), Europe (10.9 per cent), flat in the UK (0.8 per cent), lower in China (-29.4 per cent) and Overseas (-8.1 per cent)."

A market expert stayed "cautiously optimistic" on the stock while another recommended "bottom fishing".

"Investors need to track how Tata Motors is planning to respond to US tariffs. A drop in JLR sales in China is also a concern. The stock has seen a sharp correction and we remain cautiously optimistic on Tata Motors shares," 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 volumes from China.

"If one is looking for bottom fishing, then Tata Motors would be an excellent idea. So, even if the stock trades at 11-12x, you could be looking at a target price of Rs 1,000 for Tata Motors. There could be some hiccups in the near term," said Sharad Avasthi, Head of Research (PCG) at SMIFS.

As of December 2024, promoters held a 42.58 per cent stake in the Tata Group company.