Most Tata stocks fall for 3rd day post-Chandra's exit; TMPV top loser

Heavyweights, including Tata Consultancy Services (TCS), Tata Steel, Tata Communications, Trent and Tata Motors Passenger Vehicles traded lower, with losses up to 6 per cent in some counters.

Tata group stocks traded mixed on Friday, August 14, continuing their weak trend following the resignation of Tata Sons’ long-time chairman N Chandrasekaran earlier this week.

 

The group’s stocks witnessed a knee-jerk reaction in the initial trading sessions but have since found some stability. On Friday, Tata Motors gained nearly 2 per cent, while Nelco rose nearly 3 per cent. Voltas and Tejas Networks also traded in positive territory.

 

Meanwhile, some of the heavyweights, including Tata Consultancy Services (TCS), Tata Steel, Tata Communications, Trent and Tata Motors Passenger Vehicles  (TMPV) traded lower, with losses up to 6 per cent in some counters.

 

 

TMPV came under selling pressure after the company reported weak June quarter results on Thursday. The company’s profit for Q1FY27 fell nearly 80 per cent year-on-year to ₹859 crore in the June quarter amid supply chain headwinds and persistent commodity pressure. The company had posted a net profit of  ₹4,003 crore in Q1FY26.

 

Total revenue from operations for the reporting quarter, however, rose 9 per cent year-on-year to  ₹95,799 crore from  ₹87,677 crore in the first quarter of the preceding fiscal year.

 

Brokerage firm Jefferies noted that, looking through the potential near-term market concerns related to leadership change, “we believe business fundamentals will prevail.”

 

Jefferies further added that its top picks among Tata Group companies are IHCL, Tata Consumer, Tata Steel, and Voltas.

 

Jefferies is bearish on the outlook for Tata Consultancy Services, Tata Motors Passenger Vehicles, and Tata Power. It has an “Underperform” rating on all three due to growth concerns at TCS, JLR headwinds (TMPV), and execution issues at Tata Power. The brokerage has a “Hold” rating on the growth kings of the group, Trent (visibility on growth) and Titan (valuation concerns).

 

The brokerage, meanwhile, is positive on Voltas, the largest room air-conditioner player in the country and on Titan, given the market share gains, premiumisation and rising scale of adjacencies and expects revenue and profits to grow by 16-21 per cent

 

On Tata Steel, the brokerage noted that “Tata is a key beneficiary of a potential recovery in India steel prices, while Asian spreads have room to expand.” For Tata Consumer Products, the brokerage said that “TCPL is uniquely positioned, with limited dependence on crude-inked inputs vs peers. India is core to stable growth, while the growth portfolio should see rapid growth.”

 

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