Tata Motors shares have now corrected 47% from their peak of ₹1,179, which they had hit on July 30 last year, and have lost nearly ₹2 lakh crore in market capitalisation since then.
The stock is also down close to 13.5% in the month of February, which will mark its seventh consecutive negative monthly return and its worst month since October last year, when the stock had declined 14%.This is also the worst monthly losing streak for Tata Motors since 2015, when the stock fell between March and September that year, before rebounding in October and November.
On the charts, Tata Motors trades below all of its key moving averages, which is the 50, 100 and the 200-DMA. Its RSI is now at 28, which means the stock is in “oversold” territory. An RSI reading below 30 means the stock is “oversold.”Tata Motors shares were the best performers on the Nifty 50 index in 2023, and also the only one who doubled in value on the index that year.
Despite this steep fall in share price, three out of the 34 analysts who have coverage on Tata Motors still expect the stock to cross levels of ₹1,000 and above.
Haitong Securities has the highest price target on the street for Tata Motors, which is at ₹1,300 and implies that the stock may almost double from current levels. Domestic brokerages like Axis Capital and Reliance Securities also have price targets of ₹1,100 each on the stock.
20 out of the 34 analysts who have coverage on Tata Motors have a “buy” rating on the stock, nine of them say “hold”, while five have a “sell” rating.
Consensus estimates of price targets imply a potential upside of 32% for the stock. Jefferies has the lowest target on Tata Motors at ₹625.
Shares of Tata Motors ended 4.3% lower on Friday at ₹620.
