Nomura has maintained its Buy call on Tata Motors, with a target price of ₹1303, reflecting an expected upside of 40%. The report comes after Jaguar Land Rover (JLR), a key division of Tata Motors, reported a 3% year-on-year decline in retail volumes and a 10% year-on-year decline in wholesale volumes for Q2 FY25.
Nomura estimates JLR’s annual sales to remain flat year-on-year at 403,000 units for FY25, implying a modest 3% year-on-year growth in the second half of FY25 with projected sales of 109,000 units per quarter.
For Q2 FY25, Nomura forecasts JLR’s EBIT margin to decline to 5.8%, down from 8.9% in Q1 FY25 and 7.3% in the same quarter last year. Despite this, the brokerage expects JLR’s EBIT margin to reach 8.3% for FY25, slightly below the company’s guidance of at least 8.5%.
Current Market Price (CMP): ₹928.30
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