Jefferies has maintained an ‘Underperform’ rating on Tata Motors with a target price of ₹630 per share, citing concerns around operational challenges despite the company’s renewed strategic focus across business verticals.
The brokerage acknowledged Tata Motors’ efforts to strengthen its franchise and improve margins in both passenger vehicles (PVs) and commercial vehicles (CVs). The company is aiming to launch seven new models in the PV segment, with the goal of gaining 5–7% market share and achieving a 10% EBITDA margin by FY30.
In the CV business, Tata Motors anticipates an industry CAGR of 3–5% between FY25 and FY30, and is targeting a 3% market share increase alongside double-digit EBITDA margins by FY27.
However, Jefferies remains cautious. While it acknowledges the company’s ambitious product pipeline and margin aspirations, it believes multiple headwinds—across JLR, CV, and PV segments—pose execution risks. These include regulatory changes, competitive intensity, global economic uncertainty, and evolving EV dynamics.
The stock last closed at ₹717.50, implying a downside of around 12% from Jefferies’ target price.
Disclaimer: This article is based on brokerage reports and is meant for informational purposes only. Business Upturn does not provide stock advice or recommendations.
