Stocks

Tata Motors share price jumps 1.74% to ₹680.15: Will the rally continue?

Tata Motors stock recovers after the sharp fall due to Trump Tariffs of 25%: Analyst recommend ‘BUY’ rating

Written By : Aayushi Jain

Tata Motors share price today is recovering from the sharp fall of 6% yesterday on the news of US tariff levy of 25%. As of 11:23 AM IST on 28th March 2025, the stock is trading at ₹680.15, with a 1.74% rise from yesterday's close price of ₹668.55. The stock had opened at ₹671.85, reached an intraday high of ₹684.95, and a low of ₹669.30. The total number of shares traded is 7,443,321, while the total value traded is ₹50,662.96 lakhs.

Market Capitalization and Major Financial Statistics

The Tata Motors share price today, as of 11.55 am, is ₹680.55 with a 1.79% gain:

Tata Motors shares have a high market capitalization of ₹250,571 crore, affirming its place as one of the top Indian auto companies. The beta value is 1.18, meaning moderate volatility compared to the overall market. The Day's Volume Weighted Average Price (VWAP) stands at ₹675.61, suggesting that most investors are trading around this level. Income stock investors might like Tata Motors due to its 0.88% dividend yield.

Valuation Indicators and Growth in Earnings

Tata Motors is available at favorable valuation levels. The twelve-month trailing earnings per share (EPS) are ₹86.29, showing a healthy year-on-year growth of 47.85%. The stock's price-to-earnings (PE) ratio is 7.89, much lower than the industry average of 29.80. This shows undervaluation. The price-to-book (P/B) ratio is 2.48, which is in line with industry standards since the book value per share is ₹274.53.

Historical Performance and 52-Week Range

The stock is still a long way off from its 52-week high of ₹1,179.00 but has recovered somewhat from its 52-week low of ₹606.30. In the last year, Tata Motors has been down by 31.43%. On a three-year horizon, though, the stock has returned a strong 57.33%, displaying its future growth potential.

Technical Analysis and Trading Indicators

The technical indicators show mixed sentiments for Tata Motors shares. The stock's upper circuit limit is ₹735.40, while the lower circuit limit is ₹601.70. The short-term moving averages, i.e., the 5-day SMA at ₹694.62 and the 10-day SMA at ₹688.94, reflect minor bearishness. The long-term indicators, such as the 50-day SMA at ₹690.04 and the 200-day SMA at ₹865.67, hint that the stock is trading below its historical means, which can be a buying opportunity for long-term investors.

Tata Motors vs Peers: Industry Comparison

Relative to its peers, Tata Motors seems like a cheaper investment. Its PE ratio of 7.89 is much lower than that of Eicher Motors, which is trading at a PE of 33.29. Moreover, the company's return on equity (ROE) of 36.97% is far higher than most and points to high profitability.

Why is Tata Motors' Share Price Up Today?

The 1.74% surge in Tata Motors' stock today is due to multiple reasons. Having experienced a steep 6% decline in the last session due to Trump tariffs, the stock has recovered as investors spotted a buying opportunity in the region of ₹670-680.

Analysts have also gained confidence in Tata Motors once again, especially because of the great performance of its Jaguar Land Rover (JLR) business. Nomura has recently upgraded Tata Motors to 'Buy' from 'Neutral' and increased its target price to ₹1,294, linking JLR's operational improvement as a key growth driver.

Investor Sentiment and Analyst Ratings

Rising trade volume has contributed to the stock surge. Over 7.4 million shares have been traded, indicating increased interest from investors. The stock trades above a couple of major moving averages, indicating positive sentiment for traders. Brokerages like ICICI Securities and Emkay Global have also declared "Buy" ratings for the stock with target prices between ₹831 and ₹950, backing the stock's growth prospects.

Conclusion

Tata Motors shares remain an attractive long-term investment due to their low valuation, strong fundamentals, and improved earnings performance. With analysts forecasting price targets between ₹831 and ₹950, the stock has the potential for further gains. Investors should closely monitor market conditions and upcoming earnings reports to assess future price movements.

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