Festive Cheer and GST Cut Lift Tata Motors Stock, Still 42% Below 52-Week High

Strong Festive Start Boosts Sentiment

The auto major reported a solid beginning to the Navratri season on September 22, with 10,000 vehicle deliveries and over 25,000 enquiries on the first day itself. The demand surge follows Tata Motors’ announcement earlier this month that it would pass on the full benefit of the GST reduction to its customers. The revised rates came into effect from September 22, further fueling buying interest.

On the same day, Tata Motors shares rose 1.7 per cent to hit a day’s high of Rs 707.80 on the BSE, up from the previous close of Rs 696.10. By mid-morning trade, the stock was at Rs 699.60, giving the company a market capitalization of Rs 2.57 lakh crore. Turnover stood at Rs 15.83 crore with a total traded volume of 2.25 lakh shares.

Festive Offers and Consumer Incentives

Tata Motors also rolled out limited-period festive offers, including a complimentary 32-inch LED TV for buyers booking by September 22. Customers further stand to gain benefits of up to Rs 65,000 across popular models like Ace, Ace Pro, Intra, and Yodha, spanning diesel, petrol, and bi-fuel variants.

Market Position and Technical Outlook

Currently, Tata Motors trades at a price-to-earnings (PE) ratio of 29.91 and a price-to-book (PB) ratio of 8.41. The stock has a one-year beta of 1.3, reflecting its high volatility.

In terms of market levels, the scrip stands 29 per cent above its 52-week low of Rs 542.55, but remains 42 per cent below its 52-week high of Rs 1,000. Technical indicators show a mid-range momentum, with the Relative Strength Index (RSI) at 49.7 and the Money Flow Index (MFI) at 53.3. Importantly, the stock trades above its 50-day SMA (Rs 683.4) and 200-day SMA (Rs 697.8), suggesting underlying strength.

Broader Auto Sector Trend

The festive enthusiasm is not limited to Tata Motors alone. Competitors like Maruti Suzuki and Hyundai Motor India also reported a sharp jump in enquiries and bookings during the start of the festival season, highlighting positive consumer sentiment across the auto sector.

Outlook for Investors

While Tata Motors has shown a strong festive performance backed by GST benefits and attractive offers, the stock still lags behind its 52-week high. The coming weeks of the festive season will be crucial in determining whether demand sustains and translates into stronger financial results.