Nomura has maintained a Buy rating on Tata Motors with a target price of ₹990, offering a potential 24% upside from the current market price of ₹795.50.
Key Highlights:
- JLR wholesale volumes for 3QFY25 grew 3% YoY and 20% QoQ to 104.4k units, excluding Chery-JLR China JV (CJLR).
- Retail volumes declined 3% YoY, with regional growth driven by North America (+44%) and Europe (+6%), while China (-38%), UK (-17%), and overseas (-1%) regions saw declines.
- Range Rover, Range Rover Sports, and Defender models contributed to 70% of JLR’s 3QFY25 wholesale volumes.
- Positive free cash flow (FCF) of GBP 250 million estimated for 3QFY25, supported by higher volumes.
- Forecasts Tata Motors moving from a net debt of ₹220 billion (₹60/share) in 2Q to a net cash position of ₹86/share by FY27F.
- Stock is trading at an attractive 4.2x FY27F EV/EBITDA.
Nomura highlights Tata Motors’ improving fundamentals, robust JLR sales mix, and attractive valuations, making it a compelling investment.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
