Tata Motors Shows Turnaround Promise Despite JLR Concerns: SEBI RA Flags Accumulation Opportunity

Tata Motors has entered a corrective phase after touching a high of ₹713.85 on June 16, SEBI-registered analyst Deepak Pal said. 

At the time of writing, Tata Motors shares were trading at ₹675.4, up 0.5% on the day.

The stock is now trading below its 14, 55, and 200-day Exponential Moving Averages (EMA), reflecting bearish momentum. Pal noted the weakness comes despite strength in broader auto names and is partly due to soft margin guidance from Jaguar Land Rover and global trade concerns.

From a longer-term perspective, the stock had rallied from ₹642 on May 7 to ₹744 on June 11, indicating momentum. However, it is currently in a corrective phase. 

A strong support zone lies between ₹640 and ₹650, which could offer a good entry point for long-term investors. 

If support holds and sentiment improves, Pal sees potential for a rebound toward ₹720–₹725, with a stop loss near ₹640.

On the fundamentals, Pal highlighted Tata Motors’ FY24–25 turnaround, backed by EV growth. 

The company posted consolidated revenues exceeding ₹4.4 lakh crore and net profit above ₹31,800 crore, with core profit margins at 13–15%, a debt-to-equity ratio of 0.6x, and return on equity at 19%. 

He also pointed to strong cash flows, resumed dividends after seven years, and a planned demerger of PV and CV businesses.

The stock has declined 9.8% so far in 2025.

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