Tata Motors Share Price at Rs. 681.25, Down 0.81% After NCLT Restructuring Nod

Overview

• Tata Motors’ share price today dipped 0.81% to Rs. 681.25 after securing NCLT approval for its restructuring scheme.

• The Composite Scheme separates commercial vehicles into TMCLV and consolidates passenger vehicles under TMPV.

• Analysts remain divided on outlook, with optimism on long-term efficiency but caution on near-term earnings pressure.

Tata Motors share price today, on Tuesday, August 26, 2025, remained in focus following a key regulatory development. The National Company Law Tribunal (NCLT), Mumbai Bench, cleared the company’s long-awaited Composite Scheme of Arrangement. The restructuring scheme involves its two major subsidiaries, TML Commercial Vehicles (TMCLV) and Tata Motors Passenger Vehicles (TMPV).

Tata Motors share price was trading at Rs. 681.25 on the NSE, down 0.81% or Rs. 5.55 from the previous close of Rs. 686.80. The decline comes even as the restructuring order is widely seen as a strategic milestone for the automobile giant.

Current Stock Performance 

Tata Motors stock opened the trading session at Rs. 686.80, matching its previous close. It touched an intraday high of Rs. 686.95 and a low of Rs. 678.30. The stock was hovering close to its volume-weighted average price (VWAP) of Rs. 681.27.

The day’s trading volume stood at 2.46 million shares, significantly below the 20-day average of 10.8 million shares, suggesting muted participation despite the news. The total value traded was about Rs. 16,774 lakh. With a market capitalization of Rs. 2.51 lakh crore, Tata Motors shares continue to rank among India’s top companies by size.

The stock’s 52-week range shows its volatility, with a high of Rs. 1,142.00 and a low of Rs. 535.75. On a broader scale, it still trades well below its all-time high of Rs. 1,179, though far removed from its all-time low of Rs. 10.65.

Tata Motors share price chart on TradingView shows a loss of 0.79%:

Valuations and Financial Metrics

Tata Motors stock reported trailing twelve-month (TTM) earnings per share (EPS) of Rs. 57.55, though this is a 34.63% year-on-year decline. At current prices, it trades at a price-to-earnings (P/E) ratio of 11.83, well below the sector average of 38.33. Hence, indicating relative undervaluation.

The price-to-book (P/B) ratio stands at 2.48, reflecting a modest premium to its book value per share of Rs. 274.50. Dividend yield is at 0.88%, providing limited income potential for shareholders. With a beta of 1.27, the stock remains more volatile than the broader market, amplifying both risks and rewards for investors.

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Tata Motors NCLT Approval: A Structural Shift

The highlight of the day was NCLT’s sanctioning of Tata Motors’ Composite Scheme of Arrangement, reported by The Economic Times. Under this plan, the commercial vehicle division will be separated into TMCLV, while the passenger vehicle operations will be consolidated into TMPV.

This restructuring, already endorsed by the board and shareholders, is designed to streamline the company’s structure. Hence, improve operational focus, and position the business segments for sustainable growth. Analysts believe the move could unlock new opportunities, particularly through external collaborations and strategic partnerships.

In its exchange filing, Tata Motors confirmed the tribunal’s order dated August 25, 2025, marking a critical step toward implementing the restructuring. The development aligns with the company’s long-term strategy to enhance competitiveness across its commercial and passenger vehicle businesses.

Analyst Sentiment and Key Price Level

Analysts remain divided on the stock’s prospects. Out of 26 tracked opinions, 27% suggest a ‘Buy,’ 19% recommend ‘Outperform,’ 35% rate it a ‘Hold,’ while 20% lean toward ‘Sell’ or ‘Underperform.’ This mixed sentiment shows both optimism about the restructuring and caution over near-term earnings pressures. Technically, the stock shows immediate support near Rs. 681 and resistance around Rs. 690. These price levels suggest limited upside in the very short term.

Market Outlook

Tata Motors’ share price may have slipped slightly in today’s session, but the NCLT’s approval signals a transformative moment for the company. Near-term volatility could persist due to earnings challenges and broader market conditions. However, the move to separate and consolidate its businesses could improve its long-term efficiency and growth prospects.

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FAQs

1. What is Tata Motors’ share price today?

Tata Motors shares slipped 0.81% to Rs. 681.25 mainly due to muted trading volumes and cautious investor sentiment. While the NCLT’s restructuring approval is positive, markets often ‘sell the news,’ and concerns over near-term earnings and broader market volatility added downward pressure.

2. What does the NCLT restructuring approval mean for Tata Motors?

The NCLT approval allows Tata Motors to implement its Composite Scheme of Arrangement. This involves demerging the commercial vehicle division into TMCLV and consolidating passenger vehicles under TMPV. The move is expected to streamline operations, improve business focus, and enable strategic partnerships.

3. How is Tata Motors currently valued compared to the sector?

At a P/E ratio of 11.83, Tata Motors trades significantly below the sector average of 38.33, suggesting relative undervaluation. However, the company’s earnings per share have declined 34.63% year-on-year, which tempers the attractiveness of its low valuation.

4. What are analysts saying about Tata Motors stock?

Analyst sentiment is mixed: 27% recommend a ‘Buy,’ 19% suggest ‘Outperform,’ 35% say ‘Hold,’ and around 20% lean toward ‘Sell’ or ‘Underperform.’ This reflects optimism about the restructuring’s long-term benefits but caution about short-term earnings and market headwinds.

5. What should investors watch for in Tata Motors shares going forward?

Investors should monitor the company’s execution of the restructuring, quarterly earnings updates, and demand trends in both passenger and commercial vehicles. Global auto demand, commodity price swings, and India’s EV adoption trajectory will also be key drivers of Tata Motors’ share performance.