Tata Motors Shares Set for Worst Monthly Losing Streak in 10 Years; Three Analysts See Stock Above ₹1,000
Are Tata Motors shares on a path to their worst monthly losing streak in 10 years? The question begs for an answer, and the answer is a resounding "yes". As of now, the signs are ominous for the Indian multinational automotive corporation. Let’s dive into the details.
Tata Motors: A Troubling Trend
Tata Motors shares have been declining for five consecutive days, with a 46% correction from their peak of ₹1,179 last July. This staggering decline has resulted in a loss of nearly ₹2 lakh crore in market capitalization. The stock is down over 12% in February, which, if the trend continues, will mark the seventh consecutive negative monthly return for Tata Motors. And, if the current trend persists, it will be the worst monthly performance since October 2015.
Key Indicators Suggest a Gloomy Picture
From a technical perspective, Tata Motors shares are trading below all key moving averages, including the 50, 100, and 200-DMA. The Relative Strength Index (RSI) reading is now 28, which indicates that the stock is in "oversold" territory. This reading below 30 suggests that the stock is oversold and may be due for a rebound.
What Do the Analysts Say?
Despite the current rout, three out of 34 analysts covering Tata Motors still believe the stock can cross levels of ₹1,000 and above. Haitong Securities has the highest price target, at ₹1,300, indicating a potential almost double from current levels. Domestic brokerages like Axis Capital and Reliance Securities also have price targets of ₹1,100 each on the stock.
Here are the analysts’ opinions on Tata Motors:
- Buy: 20 out of 34 analysts
- Hold: 9 out of 34 analysts
- Sell: 5 out of 34 analysts
Consensus estimates imply a potential upside of 32% for the stock, with Jefferies having the lowest target at ₹625.
Conclusion
Tata Motors shares are on a path to their worst monthly losing streak in 10 years, with the stock trading at a 52-week low. However, despite this gloomy picture, three analysts still believe the stock can touch levels of ₹1,000 and above. If you’re considering investing in Tata Motors, now may be the perfect time to buy, but only if you’re willing to take on the risk.
Better Safe Than Sorry
Will the Tata Motors stock continue its downward trajectory, or will it surprise us with a rebound? Only time will tell. As of now, the signs are not encouraging, but as the saying goes, "never count the stock out".
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