Tata Motors, the crown jewel of Indian automobiledom (yes, we made that word up), has had a year as bumpy as a Mumbai pothole-ridden monsoon road. Once kissing the stars at Rs 1,179, the stock has tumbled down to Rs 690 levels, making investors wonder: “Ab kya karein, exit maar lein ya bottom pe aur kharidein?”
Well, let’s look under the hood.
The Rise, The Fall, And The Steady Engine Beneath
From the heady days of July 2024, when Tata Motors looked like the hero of every retail investor’s WhatsApp group, the stock has crashed nearly 50%. But does the share price tell the full story?
Absolutely not.
Despite global headwinds, geopolitical shocks, and yes, Donald Trump’s random tariffs on autos again (thanks, Don), Tata Motors has silently revved its earnings engine. The company posted a whopping Rs 31,767 crore in net profit (TTM). That’s not a typo. That’s real, taxable, hard-earned, engine-oil-stained money.
Quick Glance at Financial Dashboard (because you love numbers more than halwa)
| Quarter | Revenue (Cr) | Operating Profit (Cr) | Net Profit (Cr) | OPM % | EPS (TTM) |
|---|---|---|---|---|---|
| Dec ’24 | 1,15,365 | 13,081 | 5,451 | 11.52% | Rs 86.3 |
| Sep ’24 | 1,03,016 | 12,159 | 3,343 | 11.99% | Rs 90.6 |
| Jun ’24 | 1,09,623 | 15,785 | 5,566 | 14.61% | Rs 88.0 |
| Mar ’24 | 1,21,446 | 17,135 | 17,407 | 14.28% | Rs 81.9 |
Yes, you read that right. In March 2024 quarter, Tata Motors printed over Rs 17,000 crore in PAT. Most companies throw a party if they cross Rs 1,000 crore.
What Went Wrong?
So why the 50% price crash?
One word: JLR.
Okay, that was three letters. But Jaguar Land Rover, the British luxury beast in Tata’s garage, had a bumpy ride thanks to Trump’s tariff tantrums and European slowdown. Add global EV competition, and sentiment turned sour like week-old milk.
Then came the demerger. Shareholders were split into two camps: those excited about separate CV and PV businesses, and those who saw it as corporate gyan with little effect.
Also, FII and DII activity turned skittish. While retail shareholding rose from 14.7% to 17.3%, Mutual Funds and FPIs trimmed their exposure. Perhaps they missed the earnings transcript or misread it during a chai break.
The Bull Case: Is This a Multibagger in the Making?
Let’s tick off the positives:
- Profits are rising steadily
- Debt is coming down, especially at JLR
- Net margins are improving
- Domestic business (CV and PV) continues to lead, with electric ambitions now charged up
- Tata brand = trust + chai + solid execution
Add to that a 15-year compounding growth that could make even Warren Buffett nod in approval.
Oh, and did we mention they’re giving shareholders one extra share of the demerged CV entity?
The Bear Case: Why You Should Still Hold That Seatbelt
Despite the impressive comeback, headwinds remain:
- Global economic outlook still shaky
- JLR dependence still heavy
- The stock’s EPS has peaked a few quarters back
- EV market competition is heating up
But then again, when has investing in India ever been smooth? If you wanted smooth, you’d have invested in LIC policies, not stocks.
Retail Interest: Janta Janardan Loves Tata
The number of retail shareholders jumped from 56 lakh in Sep ’24 to 66 lakh in Mar ’25. Clearly, the aam junta believes in the Tata story. Because when Tata stumbles, it usually stands taller later. Remember Tata Steel in 2016?
So, Can It Be a Multibagger From Here?
Well, let’s say it like this:
- The fundamentals are solid
- The company has navigated tougher storms
- Valuations are cooling off from previous highs
- The demerger could unlock hidden value
While Rs 1,179 may feel distant today, even a return to Rs 950 would be a 40% upside from CMP of Rs 690.
Final Verdict: Stock Market Mein Kabhi Kabhi Kya Hota Hai…
You get earnings. You get vision. You get brand power. And you get a 50% discount from the top.
That’s Tata Motors for you right now.
So should you buy? That’s your call. We’re just here to tell you this stock might be like a second-hand Safari Storme: a bit dented, but damn reliable.
