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)
| Metric | Value |
| P/E Ratio | 11.49x |
| P/B Ratio | 2.11x |
| P/S Ratio | 0.56x |
| EV/EBITDA | -17% vs intrinsic value (discount) |
| EV/Sales | -21% (discount) |
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
| Indicator | Reading | Interpretation |
| RSI (14) | 48.09 | Neutral |
| Stochastic RSI | 0.79 | Strong Uptrend |
| CCI (14) | -21.12 | Neutral |
| MFI | 36.42 | Downtrend |
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