Tata Motors Limited: In-depth Technical and Fundamental Review (August 2025)

Company Overview

Tata Motors Limited is a dominant force in the Indian automotive sector, manufacturing passenger, commercial, and electric vehicles. It has a global footprint, including subsidiaries such as Jaguar Land Rover (JLR), and is investing heavily in product innovation, efficiency, and electric mobility.

Fundamental Analysis

Financial Performance (Latest Available Data)

• Q1 FY26 Revenue: ₹104,407 crore, down 2.5% YoY.
• Q1 Net Profit: ₹3,924 crore, a sharp 63% decline YoY (previous year: ₹10,514 crore).
• FY25 Revenue: Record ₹119,000 crore.
• Profit Before Tax Q4 FY25: ₹6,600 crore.
• TTM Earnings (as of June 2025): ₹21,297 crore (Consolidated).
• TTM Revenue: ₹438,935 crore.

Valuation Metrics (August 2025)

Intrinsic Value: Tata Motors is trading at a 17% discount to its estimated median intrinsic value as of August 2025, indicating undervaluation relative to sector benchmarks.

Key Financial Ratios & Trends

• Debt Reduction: Company reduced debt by ₹5,163 crore, signalling improved financial health.
• Profit Growth (3 Years): Strong at 72.5%.
• Strategic Investments: Planned £18 billion investment over five years for operational excellence and new products, especially EVs.
• EV Penetration Plans: Aiming for over 30% of volumes from EVs by FY30.

Business Segments Highlights

• Commercial Vehicles: Record sales and robust demand in Q4 FY25 contributed significantly to revenue.
• Electric Vehicles: Successful new launches; focus on expanding portfolio and customer experience.
• Jaguar Land Rover: Mixed results; declining volumes in Jaguar, strategic shift from legacy models.

Challenges

• Tariff Issues: Uncertainty and cost pressures from regulation and international trade.
• Margin Pressures: ICE vehicle margins under strain; cost cuts and festive demand expected to help.

Technical Analysis

Price & Moving Averages (as of August 14, 2025)

• Last Traded Price (LTP): ₹664.6
• 20-Day EMA: ₹664.7 (Neutral Signal)
• 50-Day EMA: ₹675.88 (Neutral)
• 100-Day EMA: ₹688.74 (Neutral)
• 200-Day EMA: ₹725.66 (Neutral)
• 20-Day SMA: ₹667.75 (Neutral)
• 50-Day SMA: ₹681.22 (Neutral)
• 100-Day SMA: ₹679.52 (Neutral)
• 200-Day SMA: ₹711.5 (Neutral)

Momentum Indicators

Support & Resistance (Classic Method)

• Support Levels: ₹650.5, ₹654.1, ₹659.35
• Pivot: ₹662.95
• Resistance Levels: ₹668.2, ₹671.8, ₹677.05

Commentary

Most technical indicators reflect a neutral stance for Tata Motors at current price levels. However, Stochastic RSI suggests possible short-term momentum, while MFI indicates some selling pressure. Price mostly oscillates around key moving averages, reflecting range-bound behavior and consolidation.

Analyst Sentiment & Outlook

• Analyst Ratings: 50% “Buy” recommendations from surveyed analysts suggest moderate optimism.
• Forecasts: Revenues expected to remain robust, though profitability may be volatile due to regulatory and input cost pressures.
• EV & Commercial Vehicles: Growth expected from innovation and new launches in electric and commercial vehicles.
• Jaguar Land Rover Strategy: Focused transition to new models to combat legacy product decline.

Conclusion: Investment Takeaway

Tata Motors stands out for its solid revenue and profit growth, continued debt reduction, and strategic direction toward EVs. Valuation metrics show the stock is trading at a modest discount, providing potential upside for long-term investors, provided regulatory and margin challenges are addressed.

Short-term view: Neutral technical signals with possible short-term momentum.

Long-term fundamentals: Positive due to strategic investments and de-leveraging, but volatility remains due to macroeconomic and sector-specific headwinds.

Ideal for: Investors seeking exposure to India’s automotive transformation, especially in the electric and commercial vehicle space.

Source: TickerTape, TataMotors, The Economic Times, Smart Investing