Tata Shares Suffer Rs 8.2 Lakh Crore Shock In 6 Months; Good Opportunity To Invest? – News18
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Tata Group, is currently experiencing a significant stock market rout, with its 24 listed companies collectively losing a staggering Rs 8.2 lakh crore in market cap
Tata Motors, Tata Investment
India’s most valuable conglomerate, the Tata Group, is currently experiencing a significant stock market rout, with its 24 listed companies collectively losing a staggering Rs 8.2 lakh crore in market capitalization. This massive selloff is being driven by relentless selling from Foreign Institutional Investors (FIIs), which continues to drag down the value of the group’s blue-chip stocks. In the past six months alone, the group’s total value has shrunk by 24%, with key players like Tata Consultancy Services (TCS) and Tata Motors bearing the brunt of the downturn.
Decline in Market Capitalization
From a peak of Rs 34.77 lakh crore in early September of the previous year, Tata Group’s market valuation has plummeted to Rs 26.5 lakh crore, according to data from ACE Equity. The ongoing selloff has seen broad-based pressure across multiple sectors, including IT, automobiles, retail, and consumer goods.
TCS Faces Steep Decline
Tata Consultancy Services (TCS), the crown jewel of the Tata Group and India’s second-largest company by market capitalization, has experienced a sharp decline. The IT giant has lost Rs 3.67 lakh crore in market value, with its stock dropping by 22.5% in the past six months. InCred Equities recently revised its earnings estimates and target prices for TCS, citing potential slower global growth, changes in client IT spending patterns, and the impact of tariffs and AI-driven productivity gains.
Tata Motors Struggles with Declining Demand
Tata Motors, a key player in both passenger and commercial vehicles, has fared even worse. The company’s share price has plummeted by 42.78%, wiping out Rs 1.7 lakh crore in market capitalization. This sharp correction is attributed to weak demand for Tata Motors’ Jaguar Land Rover (JLR) brand in key markets like China and the UK, compounded by concerns over potential US import tariffs on European-made cars.
Consumer-Facing Businesses Take a Hit
Tata Group’s consumer-facing businesses have not been immune to the market slump. Trent, the retail arm known for brands like Westside and Zudio, has seen a 29.7% decline in share price, erasing over Rs 74,000 crore in market value. Similarly, Titan, the luxury watch and jewelry giant, has lost Rs 47,700 crore, with its stock down approximately 15% over the past six months.
Energy and Consumer Products Also Impacted
Tata Power, a major player in India’s energy transition, has seen its stock drop by 21%, leading to a Rs 29,000 crore loss in market value. Tata Consumer Products, which owns well-known brands like Tata Tea and Tata Salt, has also been hit hard, with a 20.38% drop in share price and a loss of over Rs 24,000 crore in market capitalization.
Tata Technologies and Tata Elxsi Experience Major Losses
Tata Technologies, an engineering and digital services firm that recently launched a successful IPO, has lost 37.72% of its value, erasing more than Rs 16,000 crore in market cap. Similarly, Tata Elxsi, another technology services firm, has seen a 31% drop in its stock, wiping out Rs 15,000 crore in market value.
Hospitality Stocks Defy Market Trends
While most Tata stocks have been deeply affected by the selloff, two hotel companies within the group have managed to outperform. Indian Hotels Company, which owns the Taj brand, has gained Rs 9,700 crore in market cap, with a 10%+ rise in its stock price. Benares Hotels has surged by 46%, reflecting the post-pandemic boom in travel and tourism and strong earnings momentum in the hospitality sector.
Opportunities for Long-Term Investors
Despite the ongoing market correction, experts suggest that the situation presents opportunities for long-term investors. Christopher Wood, Global Head of Equity Strategy at Jefferies, remains optimistic about India’s prospects, stating, “India is the best structural story in Asia, and in fact globally.” Wood attributes the correction to liquidity tightening and overvaluation in the midcap space, calling it a technical-driven compression of valuations rather than a major macroeconomic problem.
However, Wood also warned that pressure on Indian equities could continue if the US stock market faces a broader correction. “If the US equity market is correcting, it will also keep pressure on India. But the good news is that India had already corrected significantly before the US stock market started showing weakness,” he noted.
Price Target for Tata Motors
Morgan Stanley has assigned an ‘equalweight’ rating to Tata Motors with a price target of Rs 853. The brokerage highlighted that Land Rover sales in the US saw a significant 79% increase compared to the previous year, reaching 11,900 units. This performance follows a 70% growth in January 2025 and a 34% growth in December 2025.
For the financial year 2024, Jaguar Land Rover (JLR) accounted for 23% of Tata Motors’ overall sales, contributing 15% to its consolidated sales figures.
Morgan Stanley noted that the European Commission’s upcoming industry action plan, to be unveiled on March 5, will be an important trigger to watch for Tata Motors’ stock. Any potential flexibility in Carbon Dioxide regulations would positively impact JLR, according to the brokerage.
Global brokerage CLSA has upgraded its rating on Tata Motors, believing that the current adverse near-term outlook presents an opportunity to enter the stock at favorable valuations. CLSA has assigned an ‘outperform’ rating with a price target of Rs 930.
Emkay Global has set a higher target price of Rs 950, while Motilal Oswal has a more conservative target of Rs 755 for Tata Motors’ stock.
TCS Target Price
InCred remains optimistic about Tata Consultancy Services (TCS) and has maintained an ADD rating on the stock. The brokerage’s previous growth assumptions were based on anticipated demand growth in two key areas: 1) a recovery in the financial services industry (FSI) in the US, driven by regional bank recoveries, and 2) a boost from short-cycle projects and positive client conversations and decision-making. However, InCred noted that tariff-related uncertainties could introduce caution, potentially impacting earnings across various industries.
InCred has set a target price of Rs 3,925 for TCS, which represents a 12.7% upside from the current market price of Rs 3,483. The brokerage retains its target Price-to-Earnings (PE) ratio of 2.6x to reach a target P/E of 24x (down from 28x) for FY27F, resulting in a revised target price of Rs 3,925, down from Rs 4,915 previously.
InCred highlighted that the certainty around operating cash flow, dividend payout ratios, and healthy return ratios supports its target PE/G multiple. However, the brokerage also pointed out potential downside risks, including a slower recovery in the North American market and the FSI vertical, weaker bookings in the first half of CY25F, and higher project cancellations, which could impact their growth assumptions and target price.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
