Tata Motors shares on track for worst monthly losing streak in a decade. Bargain buy or stay away?
Tata Motors are on track for their worst monthly losing streak in nearly a decade, as persistent selling pressure has pushed the stock down by 12.2% in February. This marks the seventh straight month of negative returns and the steepest monthly decline since October 2023, when the stock slumped 14%.
The last time Tata Motors witnessed such an extended downtrend was in 2015 when the stock declined consecutively from March to September before rebounding in October. The worst-ever monthly drop for Tata Motors came in March 2020, when the stock tumbled nearly 45% amid the COVID-19 market crash.
On Friday, the stock fell as much as 2.8% to Rs 630.15 on the BSE, hitting a fresh 52-week low and extending its losing streak to nine consecutive sessions. The stock has also corrected 46% from its all-time high of Rs 1,179 in July 2024, wiping out nearly Rs 2 lakh crore in market capitalization.
What’s weighing on Tata Motors shares?
The stock’s persistent weakness comes amid concerns over Jaguar Land Rover’s (JLR) softening demand in China and the UK, two key markets. Additionally, investor sentiment has been hit by uncertainty around potential U.S. import tariffs on European-made vehicles, a segment where JLR has significant exposure.
Domestically, Tata Motors is struggling with weakening passenger vehicle (PV) sales and a slowdown in the medium & heavy commercial vehicle (M&HCV) market. Rising competition in India’s EV space has further added to the pressure.
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