A leading brokerage has identified a major upside opportunity in the auto sector, forecasting over 40% growth for a key stock. The firm remains highly optimistic about the company’s global expansion strategy, particularly in premium and luxury segments, and believes that strong demand across key international markets will drive earnings growth.
The brokerage has maintained its ‘High Conviction Outperform’ rating on Tata Motors, setting a target price of ₹930, implying a 43% upside from the current market price of ₹648.90 (as of March 11). It highlighted that Jaguar Land Rover (JLR) is on track to achieve its FY25 targets, with volume growth expected in Europe and the US. Additionally, Tata Motors is currently trading below its normative valuation multiple, suggesting room for a re-rating as profitability improves.
With robust demand for JLR models, stable domestic passenger vehicle performance, and a strong focus on electric vehicles (EVs), CLSA believes this auto stock could witness significant appreciation in the coming months.
Disclaimer: The above stock recommendations are based on brokerage reports and do not constitute financial advice. Investors are advised to conduct their own research before making investment decisions.
