1:1 Split Record Date Next Week: Tata Motors Share Falls 5 Days In Row, Down 7%; Buy-On-Dips Before Demerger?

Tata Motors share price has recorded selling pressure for the fifth consecutive session. On October 9th, the heavyweight auto stock declined by nearly 2% on BSE, erasing significant market value. In past five sessions, the drop is nearly 7%. This Tata Group-backed automobile giant is going to be in focus ahead as its record date for 1:1 demerger is scheduled next week. Despite holding a healthy ROE, Tata Motors shares are still trading lower compared to market.

Tata Motors Share Price:

At the time of writing, Tata Motors stock traded at Rs 673.35 apiece, down by 1.2% on BSE, with market cap of Rs 2,47,945.96 crore. The stock plunged nearly 2% to hit an intraday low of Rs 669 apiece.

Earlier, Tata Motors stock declined by 2.4% on October 8th, followed by 2.01% drop on October 7th. The stock dipped by 0.5% and 0.30% on October 6th and October 3rd. During these five trading days, the decline is over 6.8% on BSE.

Its single-day gain of October so far is on October 1st, when its demerger came into effect, which meant the restructuring of management and business. On this day, Tata Motors shares jumped by 5.5% and touched Rs 720 level.

YTD, the stock is down by 10.2% on BSE so far. Tata Motors stock has a 52-week high and low of Rs 948.20 apiece and Rs 542.55 apiece respectively. Its price-to-equity ratio is at 28.76x, while return on equity is healthy at 28.12%.

Tata Motors Demerger Record Date:

The auto giant is going to split in the ratio of 1:1. The demerger will result in listing of two separate entities namely TML Commercial Vehicles and Tata Motors Passenger Vehicles which will include JLR business as well.

To identify eligible shareholders for 1:1 demerger, Tata Motors has fixed October 14th as the record date. This means that only those investors will be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by them in the Company on the "Record Date".

But before that, Tata Motors also set Friday, October 10, 2025 as the "Record Date" for the purpose of determining the eligible Debenture Holders of the identified Non-Convertible Debentures ("NCD") to be transferred from the Company to TMLCV as per the Scheme. Tata Motors is also merging its NCDs worth Rs 2,300 crore with TML Commercial.

After this, the said equity shares to be allotted by TMLCV are proposed to be listed with BSE Limited and the National Stock Exchange of India Limited, subject to necessary regulatory approvals.

BUY/SELL/Hold Tata Motors Shares?

According to MarketsMojo report, the stock's price-to-earnings (P/E) ratio stands at 11.60, significantly lower than the industry average of 24.93, suggesting a potential valuation disparity within the sector. Over the past year, Tata Motors has experienced a decline of 27.93%, contrasting with the Sensex's modest gain of 0.40%. The stock has also faced challenges over shorter time frames, with a 5.76% drop over the past week and an 8.63% decline year-to-date. However, the company has shown resilience over longer periods, with a remarkable 388.84% increase over the past five years, outperforming the Sensex's 101.91% growth in the same timeframe.

Meanwhile, the consensus recommendation from 27 analysts for Tata Motors Ltd. is HOLD, as per Trendlyne data. Of the total, 7 analysts suggested STRONG BUY and 5 analysts recommended BUY. The average target price is at Rs 766.63 apiece, hinting at nearly 14% potential upside ahead.

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