Tata Motors shares crashed to hit 10-month Low: Great chance to Buy!

Tata Motor share

Tata Motors shares crashed to hit 10-month low: Great chance to Buy!

Tata Motors Share: Tata Motors’ share has been negative, moving from Rs.1121.65/- per share to Rs. 784.75/- per share in the last 75 days.

Why has Tata Motor share kept moving negative in the last 75 Days?

Should be Buy the Tata Motors’ share or Hold?

Tata Motor share
Tata Motors shares crashed to hit 10-month low: Great chance to Buy!

 

Tata Motors shares turns negative for 2024 after four straight days of losses and have been negative for the last 75 days.

Tata Motors shares crashed to hit 10-month low: Great chance to Buy? 

Should be Buy the Tata Motors’ share or Hold?

There are the following factors behind turning down Tata Motors’ share continuously.

  • Quarterly Report

          The quarterly sales report decreased by 10% on a year-by-year basis (Sept 2023: 3832 Cr.; Sept 2024: 3450 Cr.). Whereas the   quarterly sales report decreased by 39.4% (June 2024: 5692 Cr.; Sept 2024: 3450 Cr.).

  • JLR Performance:

    Jaguar Land Rover (JLR), a significant contributor to Tata Motors’ revenues, has faced challenges due to factors such as supply chain disruptions, rising input costs and geopolitical tensions. JLR’s recent cut to its free cash flow guidance has raised concerns among investors.

  • Global Economic Situation:

    The global economic outlook, particularly in key markets such as Europe and China, impacts demand for luxury vehicles produced by JLR. Economic uncertainties may lead to reduced consumer spending and overall sales may be affected.

  • Investor sentiment:

    Negative sentiment about the company’s performance and future outlook may cause selling pressure on the stock. News and analyst reports can significantly influence investor sentiment.

  • Domestic Market Performance:

    While the Indian market has shown growth, it has not been enough to compensate for the potential weakness in the international market. Competition from other automakers in the domestic market also plays a role.

  • Stock is not in ASM (Additional Surveillance Measure) & GSM (Graded Surveillance Measure) list.
  • The Promoters have not pledged holding
  • The Promoters have reduced the holding from 46.36% to 42.58% in the September quarter with respect to the June quarter.
  • Foreign Institutional Investment (FII) have increased the holding from 18.18% to 20.54 %  in the September quarter with respect to the June quarter.
  • Domestic Institutional Investment (DII) have increased the holding from 16.07 to 16.82%.
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