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  • Category: Stock Market

    Why is Tata Motors script continuously going down?

    Have a query abut Tata Motors stocks? Looking out for detailed reasons for the status of stocks today? check out this page and get answers to your questions here.

    I track the stock prices of Tata Motors and Tata Motors DVR. These two stocks are considered wealth-generating stocks. However, I have been noticing that since the last three months, the prices of these two stocks are continuously going down. Both these stocks are presently trading at 52-week level low.

    I would like to know whether these two stocks are going down due to the increasing interest rate? Or is there any other factor involved behind the low prices of these two stocks? Is it appropriate time to purchase these two stocks, or should I wait further?
  • Answers

    2 Answers found.
  • The stock value has come down by 37 % in the current calendar year. It is one of the badly hit stocks. Still, there are chances for the stocks to come down is the general prediction about these stocks. An expert in the field says "The company has to align many geographies and once that happens, then the stock will start rising again". But it will take some time and one should have the patience to wait. If you can wait for some time around a year or so you can take some shares now. But if you want immediate gains, this is not the stock preferred.

    always confident

  • Tata motors(TM), a company with a market cap of nearly 74 thousand crores, has been steadily falling since the last one year.In fact it is at the price where it was 5 years back; although Tata motors is a established player, this current price is worrying to many investors because the markets are at record highs and Tata motors is struggling.

    This well known brand is going through some troubled times. There are many reasons
    1. The JLR arm, Jaguar/Land rover of TM is not doing well in terms of sales and revenue generation.In July alone there was a 21.6% fall in JLR sales.

    2. Adverse impact of BREXIT and abscence of free trade with European union. JLR has exports upto 80% of its production and it is expected to loose 1.2 billion pounds in a year.

    There are some rays of hope, in the sense, Tata sons, have bought back shares via block deals to the tune of Rs 673 crores over the last few weeks and increased their stake. This indirectly implies the confidence that this fall is temporary and TM can recover in time.

    The domestic market is better and should be able to support

    Many experts feel that this stock still has life in it and can raise to nearly 50-55% of the current prices (Rs 250/share). The journey to the top may not be too soon.

    Should we buy it?

    Going by valuations, this is a good stock to buy. There is still concern that it can drop further around the Rs 225-Rs230 mark(TM). If one has a long term horizon, we can start picking up in small aliqouts.
    If you see the sales vs purchase today, around 66 thousand have been sold and 35 thousand shares bought. So, there are people who may be thinking long term.

    The other issue that may not have a direct impact is the ouster of Mr.Mistry and the tussle to buy back the TM shares in his portfolio by tata sons, the need for the court to intervene between the two is not good news.

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