Shares of Tata Motors resumed their downward trend on Monday after a single-day break. The stock fell 3.41 per cent to hit a daily low of Rs 814.85. It was last seen down 2.44 percent at Rs 823. At this price, the stock is down 18.98 percent in the last six months.

The automaker reported total sales of 82,682 vehicles in October 2024, down slightly from 82,954 units in the same month last year. The company’s domestic utility vehicle (CV) segment saw a slight increase of 1 percent, with sales reaching 32,708 units, compared to 32,488 units in October 2023. In the utility vehicle segment, passenger carriers showed the strongest growth at 13 percent, while heavy commercial vehicles vehicles trucks declined 2 percent.

In the passenger vehicle (PV) segment, domestic sales reached 48,131 units, virtually unchanged from 48,337 units in the previous year. Sales of electric vehicles (EVs), which are included in the photovoltaic segment, saw a decline of 2%, with 5,355 units sold compared to 5,465 units in October 2023.

“The stock is facing selling pressure due to weak auto sales. Investors with a longer-term horizon may hold on to Tata Motors as China’s stimulus package could have a positive impact on JLR’s sales (Jaguar Land Rover),” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. The automaker gets around 67 percent of its revenue from JLR, while JLR gets almost 27 percent of its volumes from China.

On the technical sheets, the meter seemed “weak”. “Tata Motors share price looks weak on daily charts and it may slide towards Rs 750 level,” said Ravi Singh, senior vice president (retail research) at Religare Broking.

“The current price structure is characterized by lower highs forming with no signs of recovery. We advise against fishing the stock at its current valuations,” suggested Kushal Gandhi, technical analyst at StoxBox.

The stock is trading lower than the 5, 10, 20, 30, 50, 100, 150 and 200 day simple moving averages (SMA). The stock’s 14-day relative strength index (RSI) stood at 26.90. A level below 30 is defined as oversold while anything above 70 is considered overbought.

According to the BSE, the stock has a price-to-equity (P/E) ratio of 30.57 against a price-to-book (P/B) value of 10.30. Earnings per share (EPS) stood at 27.59 with a return on equity (RoE) of 33.69. The promoters held 42.58% stake in Tata Motors as of September 2024 quarter.