Tata Technologies shares dive 6% today; should you consider adding?

Tata Technologies Ltd shares slumped 6.12 per cent in Tuesday's trade to hit a low of Rs 662.75. The stock was last seen trading 5.79 per cent down at Rs 665.05. At this price, it has corrected 25.36 per cent on a year-to-date (YTD) basis.

The counter fell today after it was reported that TPG Rise Climate may offload 1.59 crore shares (or a 3.9 per cent stake) in the company via block deals priced at Rs 670-698.

On the earnings front, Tata Tech posted a consolidated net profit of Rs 188.87 crore in the fourth quarter ended on March 31, 2025 (Q4 FY25), up 20.12 per cent from Rs 157.24 crore in the year-ago period. During the quarter under review, revenue from operations of the Tata Group firm came at Rs 1,285.65 crore, registering a drop of 1.18 per cent compared to Rs 1,301.05 crore in the corresponding period last year.

A few market experts suggested that investors with a long-term view can consider adding this stock.

"The management commentary post quarterly results was encouraging. They are expecting this quarter as well to be a bit slow but things should start picking up from Q2 onwards. As of now, deals are being inked but the execution flow is still getting awaited because of the tariff thing happening in the US which is unsettling the entire European and US market. Stay invested if you are already an investor. Tata Tech is a nice company to get into from the auto mobility segment but you need to have patience for at least one year. From H2 of FY26 should start recovering for them and then these valuations will look very cheap. We do have an initiating coverage on this company and our price target is Rs 1,400 from a two-year timeframe," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities told Business Today.

"I am very much positive on this stock and I think it can hit Rs 900-950 level over the next 12 months," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

"Investors with a long-term view should only consider this stock. One can add Tata Technologies on dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

As of March 2025, promoters held a 55.22 per cent stake in the Tata Group firm.