Tata Group-backed automobile giant, Tata Motors, which was among the top 2024 losers in Sensex and Nifty 50, has started to witness a reverse in its performance. For the past 5 sessions, the stock zoomed nearly 3%, but its rising momentum has been recorded in the past six months to the tune of 11-12%. Currently, Tata Motors shares are less than Rs 7 away from hitting their Rs 700 mark. Majority of experts are bullish on Tata Motors, which is going to demerge in a 1:1 ratio, likely in October.
Tata Motors Share Price:
In the early trade of September 2nd, Tata Motors stock price rose by 0.5% to hit an intraday high of Rs 693.55 apiece. Currently, the stock is near its day's high with market cap of Rs 2,55,197.75 crore. From the latest high, the stock is just Rs 6.45 away from Rs 700 mark.
In past five sessions, Tata Motors zoomed 2.7%, and in a month, the upside is over 6%. In past six months, this auto stock has gained by 11.6% on BSE.
The latest upside in Tata Motors comes after the company reported total sales of 73,178 units in August 2025, however, down by 2% from sales of 70,006 unit in August 2024. Of the total, the commercial vehicle sales stood at 29,863 units, up 10% YoY. While total PV sales stood at 43,315 units, down 3% YoY.
Tata Motors Split:
The much-awaited demerger of a 1:1 ratio is likely to become a reality soon.
In its latest filing, Tata Motors said the final hearing for the scheme of demerger has been concluded today by NCLT and the order is reserved; we aim to complete it this quarter, with 01st October being the Effective Date.
The company is going to demerge its business into two listed entities in due course. One will be focused on commercial vehicles (CV) and the other will emphasise the passenger and JLR cars segment.
As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio 1:1.
Tata Motors Share Recommendation:
The consensus recommendation from 26 analysts for Tata Motors Ltd. is HOLD, as per Trendlyne data. However, of the tota, 7 analysts have suggested STRONG BUY, 5 analysts recommended BUY and 9 analysts have given HOLD rating. 3 experts have SELL stance on Tata Motors. The average target price is at Rs 746.73 apiece, suggesting at nearly 8% potential upside ahead.
Also, analysts at Devan Choksey in their report said, "Management guides for single-digit growth in FY26E for PV/CV, with Q2FY26E recovery on a low base. PV growth is expected to remain in the range of 1.0-2.0% in FY26E amid muted sentiment, with Altroz/Tiago refresh aiding hatch share recovery, and Sierra EV/Harrier EV launches boosting UV positioning. EV mix is seen rising to ~17.0% in Q2FY26E, supported by festive demand."
Accordingly, Devan Choksey analysts have suggested an "ACCUMULATE" rating on the stock, for a target price of Rs 722 per share.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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