Tata Motors has released its shareholding pattern for the quarter ending March 2025 (Q4FY25), showcasing some intriguing movements among key investor categories. The latest data reflects a mixed sentiment as institutional investors reshuffle their positions, while retail participation continues to surge.
Foreign Institutional Investors (FIIs) trimmed their stake in Tata Motors during Q4FY25, reducing their holding to 17.84% from 18.66% in the previous quarter. This signals some caution or profit-booking by global funds amid the ongoing volatility in the auto sector.
In contrast, Domestic Institutional Investors (DIIs) have shown growing confidence in the company, increasing their stake from 16.54% in the December 2024 quarter to 16.88% by the end of March 2025. Among DIIs, Life Insurance Corporation of India (LIC), the country’s largest domestic investor, has significantly ramped up its stake. LIC now holds 3.15% in Tata Motors, up from 2.54% last quarter — a strong sign of faith from one of India's most influential institutional investors.
Interestingly, the real spotlight falls on retail investors. Despite Tata Motors' stock being down by 50% from its all-time high and registering a sharp 32% decline over the past six months, retail investors have continued to buy into the stock. The number of retail shareholders has now crossed a staggering 66 lakh — the highest among all Nifty50 stocks, underscoring the deep retail interest even amid price weakness.
Looking ahead, all eyes are on Tata Motors' Q4FY25 financial results, which are scheduled to be announced on May 30, 2025. Investors are expected to pay close attention to the management’s commentary, especially in light of recent geopolitical developments. U.S. President Donald Trump has announced a 25% tariff on all automobiles manufactured outside the United States, a policy move that could have significant implications for Tata Motors, given its global operations and exports. The management’s insights on this issue during the earnings call will be crucial for investors assessing the stock's future prospects
The sharp correction in Tata Motors’ share price seems to have presented a buying opportunity for small investors, who are betting on the company’s long-term fundamentals despite short-term headwinds.
Disclaimer: This article is purely for informational and educational purposes and is not a recommendation to buy or sell any stock. Investments in the stock market are subject to market risks. Please consult with your financial advisor before making any investment decisions.
