Share of Tata Motors Limited (NSE: TATAMOTORS) is in focus on, Wednesday, September 11.
The company’s stock has fallen by up to 6% and came to an intraday low of Rs 971.25.
There is a big reason behind this decline in share. A global brokerage firm has recommended ‘sell’ Tata Motors with a target price of ₹ 825 per share.
This is indicating a potential decline of 20% from Tuesday’s closing price of Rs 1035.45.
Let us tell you that this stock of Tata Group is already 15% down from its record high of ₹ 1179. It touched the record high on 30 July 2024.
Table of Contents
Reason For Fall In share
A top brokerage firm is cautious about this stock.
The brokerage firm believes that the premium models of Defender, Range Rover, and Range Rover Sport-JLR have driven the average sales value (ASP) higher, but the demand for these models has slowed down.
The order book has dropped to lower than the pre-pandemic level, and discount prices for Range Rovers may soon increase.
The question is, should investors be concerned about the rising JLR discounts? the brokerage wrote in a note.
Strong sales of JLR’s premium models have pushed up Tata Motors’ average sales value so far and hence concerns that a slowdown in demand could impact its margin performance.
On September 10th, 2018, the automaker announced significant price reductions throughout its electric car (EV) range in its ‘Festival Of Cars’ promotion.
The limited-time offer, valid till October 31, is aimed at making EVs more accessible and driving its adoption in India.
In a statement, Tata Motors said the move will help bring electric vehicles “mainstream” across the country.
Tata Motors Share
If we look at the company’s share price history, it has declined by 10% in the last month. This stock has now gained 25% this year YTD and has gained 56% in the last year.
In five years, this Tata stock has given a return of up to 660%. Its 52-week high price is Rs 1,179.05 and its 52-week low price is Rs 608.45.
The market capitalization that the business has is Rs 3,59,365 crore.
Quick Fact
| Company name | Tata Motors |
|---|---|
| Fall reason | Slow demand for JLR premium models |
| Current low price | ₹971.25 |
| Possible target price | ₹825 |
| Decline from record high | 15% |
| Premium models | Defender, Range Rover, Range Rover Sport |
| EV price cuts | Valid until October 31 |
| Campaign name | Festival of Cars |
| One-month performance | -10% |
| YTD gain | 25% |
| 1-year gain | 56% |
| 5-year return | 660% |
| Market cap | ₹3,62,981.81 crore |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
