Breaking News

Tata Motors Share Price Inches Up 0.11% to ₹718.25: Will Momentum Sustain?

Could Tata Motors stock be the dark horse in India's auto sector rally?
Tata Motors Share Price Inches Up 0.11% to ₹718.25: Will Momentum Sustain?
Written By:
Aayushi Jain
Published on: 

Key Takeaways

  • Tata Motors trades at a low PE ratio of 11.58, making it attractive for value investors.

  • Despite a 51% drop in Q4 profit, ROE remains strong ata 23.96%, signaling efficient capital use.

  • JLR’s EV transition plan positions Tata Motors for long-term growth in green mobility.

Tata Motors share price as of 11:38 AM on May 23, 2025, stands at ₹718.25. It is a slight increase of 0.11% from the previous close of ₹717.45. The stock opened at ₹718.75. It has traded within a narrow range of ₹715.00 to ₹721.80 so far, indicating a relatively calm session.

Trading Activity and Market Behavior

Trading volume for the day is 3.55 million shares, with a traded value of ₹255.41 crore. This is well below the 20-day average volume of 13.35 million shares, pointing to a quieter trading day. The stock’s VWAP (Volume Weighted Average Price) of ₹718.59 closely mirrors its current price. Thus, reflecting a balanced demand and supply dynamic.

Tata Motors share price chart shows gains of 0.11% as of 11.45 am:

The delivery percentage over the past 20 days has averaged 47.66%. It suggests nearly half of the traded shares are being held for longer durations. This, in turn, means strong investor confidence and reduced speculative interest. 

Valuation and Financial Health

Tata Motors’ market capitalization currently stands at ₹2.64 lakh crore, solidifying its position among the premium large-cap stocks. Despite facing challenges, the company’s earnings per share (EPS) over the trailing twelve months are ₹62.01. It has seen a steep 34.35% decline year-over-year.

However, the stock trades at a price-to-earnings (PE) ratio of just 11.58, considerably lower than the sector average of 39.88. This positions Tata Motors as a potentially undervalued pick for value investors. The price-to-book (P/B) ratio is 2.62, with a book value of ₹274.52 per share. The dividend yield is a modest 0.84%, providing moderate returns to income-focused investors.

Declining Profits, High  ROI, and Dividend

Earlier this month, Tata Motors reported a 51% decline in its consolidated net profit for the March quarter, causing the stock to dip 3% on May 14. This sharp fall was attributed to tariff-related challenges and a decline in post-tax profits.

The company declared a dividend of ₹6.0 per share on May 13, with a record date set for June 4. Its return on equity (ROE) remains strong at 23.96%, well above its five-year average of 10.62%. It indicates efficient capital utilization.

Key Price Levels and Analysts Ratings

Interest in derivatives trading remains high, with over 20,700 contracts at the ₹700 strike price put option. Thus, showing active hedging and trading strategies among market participants.

Key technical levels to watch include:

Resistance: ₹724.75, ₹732.05, ₹739.10

Support: ₹710.40, ₹703.35, ₹696.05

Analysts are mixed, with the majority suggesting a ‘HOLD’ rating while the rest suggest ‘Buy’ rating. 

Strategic Outlook

Tata Motors is leaning heavily into its electric vehicle (EV) strategy. Its subsidiary Jaguar Land Rover (JLR) is planning to shift a significant portion of its India business to EVs within the next 3  to 4 years. This long-term focus, if executed well, could reposition the company as a leader in the green mobility segment.

Conclusion

Despite recent earnings pressure and market volatility, Tata Motors remains a key player in India's automotive sector. Its low PE ratio, high ROE, and long-term EV strategy offer a mixed but potentially promising outlook. With positive investor sentiment reflected in a 13.73% gain over the past month, Tata Motors continues to be a stock to watch closely.

Also Read: Top Automobile Penny Stocks: High Potential Picks with Low Debt

Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp

Related Stories

No stories found.
logo
Analytics Insight: Latest AI, Crypto, Tech News & Analysis
www.analyticsinsight.net