When it comes to investing in blue-chip companies, Tata Group stocks are usually the first to come to mind. But one Tata company — Tata Technologies — which once captured all the spotlight with its blockbuster market debut, has quietly slipped off most investors’ radar. What was once a headline-maker has now turned into a largely overlooked stock.
The market optimism in the Tata Technologies made its shares dream debut at 140% premium over the IPO price. The Tata Group stock was listed at ₹1,200 per share as compared to the IPO price of ₹500.
Investors rushed in to buy the stock as Tata Group came in with company’s IPO nearly after 20 years. However, the Tata Group stock, which is currently priced at ₹680, is currently trading nearly 50% below its listing price.
What went wrong with Tata Technologies share price?
According to market analysts, Tata Technologies sharp fall from a blockbuster IPO listing to more than 50% below its peak comes from a mix of sector, operational, and sentiment driven issues.
The initial hype faded once the company reported weaker earnings and faced a slowdown in its key automotive engineering business, especially in global EV programs.
“The biggest trigger for the decline was the completion of a large EV project for VinFast, which had previously contributed strongly to revenues. Once this project moved from development to production, billing reduced sharply, creating a temporary revenue gap. At the same time, a few other large engineering contracts also tapered off. Because Tata Tech is heavily dependent on the automotive and EV sector, it was hit hard by global headwinds like slower EV adoption, regulatory uncertainty in the US and Europe, and cost cutting by global automakers. Many OEMs reduced or delayed R&D spending, directly affecting Tata Tech’s order flow and margins,” said Abhinav Tiwari, Research Analyst at Bonanza.
Experts also believe that large block deal exits has also been one of biggest contributing factor behind the downfall.
“Compounding these fundamental challenges were large block-deal exits by institutional shareholders, which amplified concerns around growth visibility and added supply-side pressure on the stock. All together like slower growth, sectoral headwinds, elevated valuations, and significant secondary market selling the sentiment around the stock has weakened,” said Prashanth Tapse, Sr VP Research Analyst at Mehta Equities Ltd.
Can Tata Technologies share price recover?
Looking forward, Abhinav Tiwari of Bonanza is still optimistic on the Tata Technologies stock, saying that the company has diversified order book, strong client relationships, and demonstrated execution capabilities provide a solid foundation for sustainable growth in H2 FY26.
“The management’s commitment to operational discipline and thoughtful investments underscores confidence in a medium term recovery, making current valuations an attractive entry point for investors willing to endure cyclicality.
Looking forward, Tata Tech remains focused on digital engineering, smart manufacturing, Gen AI, and automotive software, these are the areas that can drive stronger growth once global policies stabilize. While sector challenges persist, its diversified order book and strong client relationships support medium term recovery,” Tiwari added.
Tata Technologies share price: Should you buy or sell?
Prashant Tapse of Mehta Equities recommends investors to remain cautious in the near-term. “From a near-term perspective, we continue to stay cautious, with limited confidence in an imminent recovery in the company’s business economics or earnings trajectory,” Tapse said.
Meanwhile, brokerage firm Prabhudas Lilladher has upgraded the Tata Technologies stock from ‘sell’ to ‘reduce’.
“We estimate USD revenue/earnings CAGR of 7.5%/15.2% over FY25-FY28E. The stock is currently trading at a PE of 32x FY27E earnings, we are assigning P/E of 29x to LTM Sep. 27E earnings. We upgrade our rating from SELL to “Reduce”,” the brokerage firm said in a note.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
