Should I buy Tata Motors stock in 2025?

Why trust HelloSafe ?

At HelloSafe, our expert has been tracking the performance of Tata Motors for over three years. Every month, lakhs of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Tata Motors.

What is Tata Motors?

The Tata Motors stock price

The price of Tata Motors stock is rising this week. As of now, Tata Motors trades at ₹690.40, showing a 24-hour increase of ₹1.85 (+0.27%) and an overall strong performance compared to last week. The company boasts a market capitalization of ₹2,54,381 crores, with a three-month average daily volume of nearly 2.8 million shares. Its P/E Ratio stands at 11.14, the current dividend yield is 0.87%, and the stock’s beta is 2.12, indicating high sensitivity to market movements. Investors should note both the promising growth potential and the sector’s inherent volatility.

Our full analysis on the Tata Motors stock

After thoroughly reviewing Tata Motors's latest financial results and evaluating the stock’s performance over the past three years, our analysis integrates key financial indicators, technical market signals, and competitive benchmarking through proprietary evaluation algorithms. This holistic approach synthesizes multi-source data to assess current dynamics and strategic drivers. So, why might Tata Motors stock once again become a strategic entry point into the Indian and international automotive sector in 2025?

Recent performance and market context

Tata Motors has shown remarkable resilience amid market volatility, with the stock currently trading at ₹690.40 and reflecting a positive 24-hour gain of +0.27%. Despite broader market fluctuations, Tata Motors has outperformed major competitors within the Indian auto sector over the past twelve months. Key developments, such as the company’s strong position in electric vehicles and healthy order book for new models, have further bolstered investor confidence. Macro conditions also favour leading OEMs: softening commodity prices and a resilient Indian economy continue to stimulate demand for both commercial vehicles and passenger cars, with Tata Motors successfully leveraging this trend. The company's market capitalization, now at ₹2,54,381 crores, places it among the top five Indian blue chips—a testament to its role as a pillar of the national industrial landscape.

Technical analysis

From a technical standpoint, Tata Motors is currently supported by robust indicators suggesting underlying strength. The 14-day RSI stands at 52.7, confirming neutral momentum and leaving room for renewed bullishness. The MACD (2.48) and stochastic (74.1) both signal favourable conditions for buyers, underlining sustained positive bias. Moving averages also reinforce a constructive outlook: while the stock is trading just below its 5-day and 200-day moving averages, it remains above its 20-, 50-, and 100-day lines—all providing robust short- and medium-term support. Notably, key technical levels—such as major support at ₹686.7 and resistance near ₹698.4—suggest a low-risk setup for strategic positioning. With seven moving average buy signals compared to just five sell signals, momentum appears increasingly constructive, suggesting that Tata Motors may be embarking on the early stages of a new bullish phase.

Fundamental analysis

From a fundamental perspective, Tata Motors continues to deliver outstanding results in both growth and profitability. The company reported a record annual revenue of ₹4,39,695 crores in FY25, reflecting a +1.3% year-on-year growth even in a challenging macro environment. Profitability remains robust, with net profit for FY25 reaching ₹28,100 crores, supported by an attractive operating leverage and EBITDA margin. The stock currently trades at a P/E ratio of 11.14, which appears extremely attractive against long-term sector averages and global auto peers. On valuation grounds, Tata Motors’s PEG and P/S ratios also imply significant headroom for a re-rating, especially as investors seek exposure to sustainable growth drivers in the automotive sector. Structural strengths—including its dominant 37.1% market share in Indian commercial vehicles, leadership in electric mobility (commanding 55.4% of the Indian EV market), and global presence through Jaguar Land Rover—underscore why investors are increasingly turning to Tata Motors to capture next-generation automotive growth. The quality of the Tata brand, ongoing innovation investments, and clear management vision further reinforce this conviction.

Volume and liquidity

The average daily trading volume for Tata Motors hovers near 2.8 million shares over the last three months, reflecting strong and sustained investor interest. This level of liquidity not only ensures efficient price discovery but also provides the stability crucial for institutional and retail investors alike. The current public float, exceeding 57%, is conducive to a dynamic market cap and supports continued upward valuation revision, should bullish momentum persist.

Catalysts and positive outlook

Multiple powerful catalysts further strengthen Tata Motors’s medium- and long-term outlook. The strategic demerger, scheduled for completion by year-end 2025, promises enhanced transparency and potential value unlocking in its distinct business arms. New product cycles—most notably the rollout of the Curvv, Harrier.ev, and the reimagined Sierra—position Tata Motors at the cutting edge of innovation, meeting Indian consumers’ rising expectations. Electrification remains a key theme, with Tata Motors securing leadership in India’s rapidly expanding EV sector and benefiting from ongoing government incentives and growing environmental awareness. On the international stage, Jaguar Land Rover’s operations are stabilizing, with tariff reductions and renewed access to key export markets, notably the US and UK. Recent net cash-positivity underscores a strengthened financial position and the group’s capacity to invest in emerging technology, sustainability, and digitalization. Additionally, the company retains a resilient supply chain, extensive R&D resources, and a unique ecosystem advantage as part of the Tata Group.

Investment strategies

• Short-term: Technical signals are aligned with bullish momentum, making a well-timed entry attractive—especially near current support levels just above ₹686.
• Medium-term: The anticipated completion of the demerger, strong new product launches, and positive analyst sentiment (with a target consensus of ₹849.75) create a fertile backdrop for revaluation and momentum trades.
• Long-term: Investors seeking sustained growth exposure in India’s mobility transformation will find Tata Motors’s EV leadership, premium brand equity, and international expansion strategies well aligned with both risk and return objectives. The group’s proven resilience, adaptable manufacturing base, and focus on future mobility trends make it a top pick for secular growth in global automotive markets.

Is it the right time to buy Tata Motors?

In summary, Tata Motors stands out today as a uniquely attractive opportunity in both the Indian and global automotive sector. The stock’s compelling fundamentals—robust revenue and profit growth, dominant market positioning, innovative product pipeline, and leadership in electric vehicles—are further supported by positive technical momentum and clear near-term catalysts such as the demerger and new product launches. An attractive valuation relative to both domestic and international peers strengthens the investment case even further. Institutional and retail confidence is high, trading volumes are solid, and analyst targets suggest significant upside from current levels. These converging factors reinforce the view that Tata Motors may be entering a new era of outperformance, with 2025 shaping up as a transformative year.

For investors seeking exposure to India’s dynamic automotive market and the next frontier of electric mobility and global expansion, Tata Motors seems to represent an excellent opportunity to capture secular growth themes while benefiting from proven management and strong fundamentals. With technical indicators turning positive and structural strengths increasingly recognized by the market, the stock merits renewed attention as a potential leader in any diversified portfolio.

How to buy Tata Motors stock in India?

Buying Tata Motors stock online is straightforward and secure with any reputable, regulated broker. You can choose to buy shares directly (spot trading) or use derivatives like Contracts for Difference (CFDs) for more flexible exposure. Spot buying gives you full ownership and voting rights, while CFD trading lets you profit from short-term moves with leverage, but without owning shares. For more details on choosing the right broker, see our comparison further down the page.

Cash buying

A cash purchase of Tata Motors stock means buying actual shares listed on the stock exchange in your own name. Typically, Indian brokers charge a fixed commission per order, often between ₹20–₹50 depending on the platform, along with potential government fees and taxes.

Gain scenario

If the Tata Motors share price is ₹690, you can buy around 2 shares with a $1,000 (about ₹83,000) stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Tata Motors shares involves speculating on price movements without actually owning the stock. This allows for leverage, making it possible to control a larger position with a smaller initial amount. Main costs include the spread (difference between buy and sell price) and overnight financing fees if the position is held beyond a day.

CFD Trading Gain Scenario

You open a CFD position on Tata Motors shares, with 5x leverage. This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing in Tata Motors stock, always compare the fees and services of online brokers carefully. Your choice between buying shares outright and trading via CFDs should reflect your investment goals and risk profile. For help selecting a platform, check our in-depth broker comparison further down the page.

Our 7 tips for buying Tata Motors stock

The latest news about Tata Motors

Shareholders approve Tata Motors demerger, paving the way for strategic business separation. Within the past week, Tata Motors secured shareholder approval for the demerger of its commercial and passenger vehicle segments into two distinct listed entities. This milestone, scheduled for completion by the end of 2025, is expected to unlock value by creating clearer business lines and allowing focused strategies—highly relevant for India-based investors seeking exposure to both growth and stability across the automotive ecosystem.

Tata Motors maintains leadership in India’s electric vehicle market with over 55% share. New data confirm Tata Motors’ dominant position in the Indian EV segment, an area emphasized by government incentives and robust consumer adoption. The company’s commitment to electrification, underlined by new model launches like the Curvv and Harrier.ev, drives not only revenue expansion but also market confidence—strengthening its profile as a sustainability leader in India.

Strong financials as group achieves net cash positive status for FY25, highlighting robust liquidity. Tata Motors reported for FY25 its transition to a net cash positive position, supported by a record annual revenue of ₹439,695 crores. This improvement in financial health increases operational flexibility and supports investments in technology, innovation, and expansion—an important factor for Indian analysts tracking balance sheet strength.

Technical indicators turn bullish, signaling renewed market interest in Tata Motors shares. Technical analysis as of July 3, 2025, reveals favorable trends: a strong buy signal from the MACD, rising support levels, and a consensus “buy” from analysts. The stock’s stability above key short-term moving averages and sustained trading volumes bolster the case for continued upside—often attracting strategic Indian investors seeking technical confirmation.

Consensus analyst target indicates 23% potential upside for Tata Motors, reflecting market optimism. In the latest research review, 30 financial analysts assigned an average target price of ₹849.75 for Tata Motors, a 23% increase from current levels. This consensus view, combined with ongoing sector reforms and Tata Motors’ innovative product pipeline, frames an encouraging investment environment for the company within the Indian equity landscape.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.