Nuvama has maintained its ‘Reduce’ rating on Tata Motors while lowering its target price to ₹720 from ₹750, citing a shortfall in Q3FY25 EBITDA due to weaker-than-expected realizations and margin miss in both JLR and the India CV division.
The brokerage highlighted that Tata Motors’ management has cut FY25 JLR revenue estimates by 3% amid subdued demand, order book exhaustion, and the discontinuation of Jaguar models. It also flagged muted revenue and EBITDA CAGR of 2% each over FY25-27, signaling concerns over growth sustainability.
For the India commercial vehicle (CV) segment, Nuvama expects only a 1% CAGR in performance, driven by moderate infrastructure spending and a high base effect. This could further pressure Tata Motors’ domestic operations.
Given these concerns, Nuvama sees limited upside in the stock and maintains a cautious stance despite potential tailwinds from seasonal demand in Q4.
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