Tata Tech Shares Today Fell 6%; Analysts Issue ‘Sell' Call, Shares Down 25% YTD, Rs.11.70 Dividend Ahead

Tata Motors subsidiary Tata Technologies, which operates in the digital engineering and product development services sector under the Tata Group umbrella, saw its stock tumble 6% in early trade on Tuesday, April 29. The stock dropped to Rs. 662 per share on the NSE after nearly 1.6 crore shares, equivalent to 3.95% of the company's total equity, changed hands in a large block deal.

Tata Technologies Shares Today

Shares of Tata Technologies today opened at Rs 685, 2.8% lower than the previous close of Rs 692.40. However, the stocks fell intraday sharply by 5.35%, currently trading at Rs 667.85 at the time of writing. Tata Tech shares are currently down 41.25% from its 52-week high range. Tata Tech shares are down 33% in the last six months and 25% so far this year. Ever since its listing on the stock exchanges at the IPO price of Rs. 1220, the stock has dropped around 45%.

Why Did Tata Technologies Shares Fall?

Although the identities of the buyers and sellers in today's block deal remain unconfirmed, several media reports on April 28 had suggested that TPG Rise Climate, a unit of US-based private equity firm TPG Inc., was planning to offload 15.86 million shares representing a 3.89% stake in Tata Technologies which led to a drop in the share price.

Tata Technologies Q4 FY25 Results

Tata Technologies in the fourth quarter reported a huge 20% jump in net profit for the fiscal year 2025. The company posted a profit of Rs. 188.87 crore, up from Rs. 157.24 crore in the same quarter last year. However, revenue from operations dipped slightly by 1.18% YoY, coming in at Rs 1,285.65 crore. Operating EBITDA stood at Rs. 233 crore, and the EBITDA margin remained flat at 18%.

Tata Technologies Dividend Announced

Tata Technologies, along with its financial results of Q4 Q4FY25 declared a final dividend of Rs. 8.35 per share along with a one-time special dividend of Rs. 3.35 per share.

Last year as well Tata Technologies announced two dividends for its shareholders, one final dividend of Rs. 8.50 and a special dividend of Rs. 1.65.

Should You Buy/Sell/Hold? Expert's View

Tata Technologies saw its business slow down in the January-March quarter (Q4 FY25), with total revenue falling by 4.7% compared to the previous quarter. The company's technology solutions business saw a big drop in revenue, down 15.6%, which was a major reason for the overall decline. The automotive sector, a key area for Tata Tech, also struggled, with business going down 2.7%.

ICICI Securities, in a broking note, mentioned that they expect a slow recovery for Tata Technologies in the coming months, so they have maintained a "Sell" rating on the stock, with a target price of Rs. 510 by March 2026, based on future earnings estimates. Which means a 26% downside is expected for this Tata stock.

About Tata Technologies

Established in in1989, Tata Technologies Limited, a subsidiary of Tata Motors Limited, is a global product engineering and digital services company with a diverse workforce of over 12,500 employees and 20 global delivery centres across 27 countries in the Asia-Pacific region, Europe and North America. Founded by Ratan Tata, the company got listed on the NSE and BSE in Dec 2023.

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