Tata Motors Share Price Holds at Rs. 715 Amid GST Boost

Analysts Remain Bullish on Tata Motors Share Price as Support Remains Strong at Rs. 700
Tata Motors Share Price Holds at Rs. 715 Amid GST Boost
Written By:
Pardeep Sharma
Reviewed By:
Atchutanna Subodh
Published on

Overview

  • Tata Motors Share Price is consolidating around Rs. 715 with strong support at Rs. 700.

  • GST Rates cut and festive demand are driving positive momentum in the stock.

  • Analysts see upside potential toward Rs. 770, while long-term outlook remains strong with EV and demerger plans.

Tata Motors Limited is trading at Rs. 715.70 on the NSE at the time of writing. The stock opened the session at Rs. 716.50, touched a high of Rs. 717.00, a low of Rs. 715.10, and is holding steady near the closing zone. The volume recorded so far is around 152,150 shares. This performance reflects a 0.09 percent intraday decline, though the broader price structure shows strength after a strong rally in the previous two trading days.

On 8 September, the stock witnessed a sharp rise from the levels of around Rs. 690 to more than Rs. 720, supported by very high trading volumes. The price action shows that bulls are active, and buyers have managed to defend key levels even as the stock undergoes some consolidation.

Trends from the Tata Motors Share Price Chart

The chart shows a breakout on 8 September 2025, where Tata Motors moved sharply from the Rs. 680–690 zone to above Rs. 710. Large green candles and strong buying activity confirmed that investors entered aggressively after the positive developments in the auto sector. After this breakout, the stock has moved into a sideways phase, holding between Rs. 712 and Rs. 722. This is a healthy sign of consolidation, where old investors book profits and new investors accumulate at support levels.

The data from the chart highlights that Rs. 712 is emerging as a key short-term support. The stock has repeatedly tested this level without breaking it, which indicates strong buying interest at this price. The immediate hurdle is at Rs. 722, where sellers are active and preventing a clean upward move. If the stock crosses and sustains above this level, the next move could take it toward Rs. 740 and Rs. 770. On the downside, the bigger support lies in the Rs. 699–705 range. If this breaks, weakness could pull the stock back toward Rs. 650.

Recent News Driving the Rally

The strong rally on 8 September was mainly driven by the government’s decision to reduce GST rates on automobiles. The announcement triggered heavy buying across the auto sector, and Tata Motors was one of the biggest beneficiaries. Following the reform, the company announced price cuts of up to Rs. 1.45 lakh on its passenger vehicles, effective from 22 September 2025. This step has been taken to pass the benefit directly to customers and boost sales ahead of the festive season.

The broader market also reacted positively, with the Nifty Auto Index gaining more than 3 percent. Shares of other automakers such as Ashok Leyland and Mahindra & Mahindra also moved higher, but Tata Motors attracted special attention because of its large product portfolio and strong presence in both passenger and commercial vehicles.

Also Read - India's Tesla Rival: Will Tata Motors’ Rs. 25 Lakh Electric Car Disrupt Musk’s Big Move?

Fundamental Position

From a fundamental perspective, Tata Motors continues to trade at valuations that appear attractive when compared to peers. The company has a market capitalization of around Rs. 2.65 lakh crore. Its price-to-earnings ratio is in the range of 12.2 to 12.5, while the earnings per share is about Rs. 57.5. The price-to-book ratio stands near 2.2 to 2.4, and the stock offers a modest dividend yield of 0.83 percent.

The company declared a 300 percent final dividend in June 2025, highlighting its improving financial position. However, its return on equity over the last five years has been volatile, with values such as 23.96 percent, 36.97 percent, 5.32 percent, –25.67 percent, and –24.34 percent at different points in time. This shows that while the business is profitable now, it remains cyclical and sensitive to global conditions, especially in its Jaguar Land Rover division.

Analyst Outlook

Several market experts have expressed bullish views on Tata Motors. Analysts from leading brokerages see the stock moving toward Rs. 770 in the short term. They point out that the breakout above Rs. 700 was a significant technical event, and as long as the stock remains above the Rs. 699–705 zone, the momentum is likely to continue. Some independent analysts even suggest that if the rally extends, Tata Motors could retest levels of Rs. 900–1,100 in the coming months.

At the same time, they warn that a sustained breakdown below Rs. 700 would be a sign of weakness. For short-term traders, stop-loss levels around this support area are being closely monitored.

Industry Position and Restructuring

Tata Motors enjoys a market share of about 13.1 percent in India’s passenger vehicle industry, placing it in third position after Maruti Suzuki and Hyundai. The company is also a market leader in the electric vehicle space, which has become a critical growth driver. Its leadership in EVs gives it an advantage as government policies continue to support clean energy adoption.

Another long-term catalyst is the company’s plan to demerge into two separate listed entities. One entity will focus on passenger vehicles and EVs, while the other will manage commercial vehicles and JLR operations. This move is expected to unlock shareholder value and bring sharper strategic focus to each segment. Investors are watching this restructuring closely, as it could impact the way the market values Tata Motors in the future.

Risks to Watch

Despite the strong outlook, investors must remain cautious of certain risks. Global economic conditions remain uncertain, and a slowdown in Europe or China could reduce demand for Jaguar Land Rover vehicles. Commodity prices such as steel and aluminum remain volatile and could affect margins. Tata Motors also carries a significant amount of debt, though it has been reducing its leverage over time. Additionally, rising competition in both the passenger vehicle and EV markets could put pressure on market share and profitability.

Investment Perspective

The overall picture suggests that Tata Motors is in a strong position both technically and fundamentally. The recent GST cuts have created short-term excitement, while the restructuring and EV growth story provide long-term opportunities. The stock is consolidating after a sharp rally, which is usually a positive sign as it builds a new base.

If the price holds above Rs. 700 and breaks above Rs. 722, the next target is Rs. 770. A medium-term move toward Rs. 800–850 cannot be ruled out if festive demand boosts sales. Over a longer horizon, there is potential for the stock to revisit Rs. 1,000 and above.

At the same time, downside risks exist, and any fall below Rs. 700 may push the stock back into the Rs. 650 region. Therefore, while the long-term outlook remains promising, monitoring support levels is critical for investors.

Also Read - Tata Motors Gears Up for EV Battle with New Stealth Editions and Upcoming Launches

Final Thoughts

Tata Motors share price today is reflecting a balance between strong bullish news and natural profit-taking after a sharp rise. The stock is consolidating near Rs. 715, with clear supports and resistances visible in the chart. 

With government reforms, festive season demand, and restructuring plans, Tata Motors has multiple growth triggers. As long as the price holds above the Rs. 699–705 zone, the stock is expected to remain in an upward trajectory.

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