Tata Motors Shares Fall 8% In 5 Days; Stock Under Pressure After US-UK Trade Deal; Should You BUY/SELL/HOLD?

Tata Motors shares continued their downfall on Tuesday as well, which is the fourth consecutive session of decline. Tata Motors stocks are currently in focus because of the recently signed US-UK trade agreement at the G7 summit. The auto stock has now fallen nearly 8% since June 11, raising concerns among retail investors.

As of 10:40 AM, Tata Motors' stock price was trading at Rs 681.75, down by 0.71% intraday. Over the last five trading sessions, the stock has slumped over 8%, while it has dropped 6.55% in the past month and more than 12.5% in the last six months. In fact, Tata Motors shares have plunged over 30% in the past year with prolonged weakness in the counter.

US-UK Trade Deal Adds Pressure on Auto Stocks

The fresh pressure on Tata Motors shares is mainly concerned with the impact of the US-UK trade deal signed recently during the G7 summit in Canada. Under the agreement, the US will cut tariffs on UK auto exports from 27.5% to 10%, with an annual quota of 1,000 vehicles. This is expected to benefit British carmakers, including Jaguar Land Rover, which is a subsidiary of Tata Motors.

Tata Motors shares also fell because, in a recent analysts' meet, JLR said it is aiming to earn only 5-7% profit from its sales by 2026, which is lower than what many investors were hoping for.

Tata Motors Share Price Target Ahead: Buy, Sell or Hold?

Global broking firm Jefferies has reiterated an "Underperform" rating on Tata Motors, slashing its target price to Rs.600, significantly below the current market price of Rs.680. The broking expressed caution after JLR's Investor Day, where the company presented a muted outlook for FY26, projecting an EBIT margin of just 5%-7% and zero free cash flow.

Jefferies also flagged several risk factors affecting Tata Motors, including global trade tensions, technological protectionism, electric vehicle (EV) transition hurdles, weakness in the Chinese economy, etc. Based on these concerns, Jefferies has cut its FY26-28E earnings per share (EPS) estimates by 12%-19%, suggesting limited upside in the near term.

Kotak Institutional Equities maintained a "SELL" recommendation on Tata Motors stock. According to Kotak, the near-term outlook for Tata Motors remains underwhelming.

Motilal Oswal has given a 'Neutral' rating on Tata Motors shares, setting a lower target price of Rs 690 with a 4% downside. "We refrain from changing our estimates at this stage. Further, JLR continues to face multiple headwinds due to the tariff-led uncertainty in its key markets," the broking note said.

Nuvama Institutional Equities has kept a 'Reduce' rating on Tata Motors shares, with a target price of Rs 670. They expect the company's total revenue and profit (EBITDA) to grow slowly, around 3% annually, between FY25 and FY27. "Tata Motors plans to invest £18 billion over five years, which remains unchanged. The company is also focusing on cost-cutting, targeting savings of £1.4 billion per year, which may start showing results from the second half of FY26," the report further stated.

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