Tata Motors (CV) Shares Fall Over 5% in Two Days After Strong Listing — Buying Opportunity or Early Profit Booking?

Mumbai | November 13, 2025: After the much-anticipated demerger of Tata Motors, investors now have two separately listed entities — one for Passenger Vehicles (PV) and another for Commercial Vehicles (CV). While the Tata Motors (CV) stock made an impressive debut on Wednesday, listing 28% above its expected price, it has since seen a steady decline, raising the question — is this a short-term correction or a long-term buying opportunity?

Strong Debut, Quick Pullback

Tata Motors (CV) shares were listed on the NSE at ₹335, compared to the estimated issue price of ₹260.75 — a 28.5% premium. However, enthusiasm quickly faded. On Thursday, the stock dropped 3.9% to ₹316.5, marking a 5.5% decline from its opening price. On the BSE, it traded at ₹315, down 3.9%. In just two sessions, the stock has corrected by nearly 4.6% from its debut levels.

On the listing day, the stock initially surged 3% to touch ₹345, reflecting strong investor excitement. But by market close, it had lost all gains — ending 1.7% lower at ₹329.45 on NSE and 0.8% down at ₹327.65 on BSE. Analysts attribute this dip to profit booking after the sharp listing-day rally.

Analysts See Long-Term Potential

Despite near-term volatility, market experts believe the outlook for Tata Motors (CV) remains strong. According to Jahangir Prajapati, Research Analyst at SAMCO Securities, the demerger has allowed investors to value each business — PV/EV and CV — on its individual strengths.

“The commercial vehicle division is the backbone of India’s growth story,” Prajapati noted. “It drives the country’s logistics, mining, and infrastructure expansion. With improving freight activity, softer raw material costs, and the reduction of GST from 28% to 18%, the CV segment is positioned for healthy growth.”

He further explained that replacement demand for older vehicles and rising orders from logistics and construction sectors are expected to sustain momentum in the coming quarters.

Financial Performance

For FY25, Tata Motors (CV) reported a revenue of ₹75,055 crore and EBITDA of ₹8,856 crore, translating into an EBITDA margin of 11.8%. Based on peer comparison with Ashok Leyland’s EV/EBITDA multiple of 12.9x, Prajapati estimates a fair value of ₹310–₹320 per share — broadly in line with its current trading range.

The Bottom Line

While the short-term slide may reflect profit-taking by early investors, analysts view Tata Motors (CV) as a structurally strong play on India’s industrial and logistics growth. Long-term investors may find current levels attractive for gradual accumulation, provided they have a multi-year investment horizon.

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