Nuvama Institutional Equities has maintained its ‘Reduce’ rating on Tata Motors, with a target price of ₹670/share, indicating downside risk from the current market price of ₹717.50.
The brokerage expects single-digit growth across the company’s domestic commercial (CV) and passenger vehicle (PV) segments in FY26, citing a high base and competitive landscape. It forecasts CV market share to rise to 40% by FY27 (from 36% in FY25), driven by new launches and a recovery in the small commercial vehicle (SCV) segment. Similarly, PV market share is seen improving to 16% by FY27 from 13% currently, backed by refreshed product lines.
Tata Motors plans to launch seven new PV models by FY30, including the much-anticipated Sierra and Avinya range, along with two new ICE and two new EV offerings.
On the financial side, Nuvama estimates that by FY27:
- CV business free cash flow (FCF) will be 7–9% of sales
- PV (ICE) segment FCF will be around ₹1,000 crore
- PV (EV) segment FCF is expected to remain negative
Despite long-term product strategies, Nuvama’s cautious stance is due to near-term margin pressures and execution challenges.
Disclaimer: This article is based on brokerage reports and is meant for informational purposes only. Business Upturn does not provide stock advice or investment recommendations.
Ahmedabad Plane Crash