India’s leading automobile giant, Tata Motors, is gearing up to separate its commercial and passenger vehicle businesses later this year. However, ahead of this significant demerger, the company’s stock has been on a continuous downward trend, hitting consecutive 52-week lows.
Over the past trading sessions, Tata Motors’ shares have been sliding further, closing over 4% lower at ₹620.55 per share on the BSE on Friday. This marks a steep decline of nearly 90% from its 52-week high of ₹1,179.05, which was recorded on July 30, 2024.
Tata Motors February 2025 Sales Performance
On Saturday, Tata Motors reported its February 2025 sales figures, revealing a decline in both passenger vehicle (PV) and commercial vehicle (CV) sales. Passenger vehicle sales dropped by 9% year-on-year to 46,811 units, down from 51,321 units in February 2024. Similarly, commercial vehicle sales declined by 7%, with 32,533 units sold compared to 35,085 units in the same month last year.
Additionally, the company has faced headwinds in domestic sales and electric vehicle (EV) demand, contributing to its overall decline in performance.
Tata Motors Share Price Target 2025 – Should You Buy the Dip?
Given the recent dip in sales and the sharp fall in stock price, investors are questioning whether now is a good time to buy Tata Motors shares. Leading brokerage firm Motilal Oswal has maintained a Neutral rating on the stock, setting a target price of ₹755.
Tata Motors Demerger Timeline – Key Dates for 2025
In February, Tata Group CFO PB Balaji provided an update on the company’s demerger, stating that the process is progressing well. He confirmed that the company is awaiting the No Objection Certificate (NOC) from the stock exchanges and SEBI.
As per the latest update, the appointed date for the demerger is July 1, 2025. If all necessary approvals, including those from the National Company Law Tribunal (NCLT), are received as scheduled, the demerger is expected to be effective by October 2025.
Tata Motors Stock Split 2025 – What It Means for Shareholders
Tata Motors had previously announced that the share entitlement ratio for the demerger would be 1:1. This means that existing shareholders will receive an identical number of shares in both the newly formed passenger vehicle and commercial vehicle entities post-split.
With the stock currently at a multi-year low and the demerger in sight, investors are closely monitoring developments to determine the right time to enter the market.
