Nuvama has maintained a ‘Reduce’ rating on Tata Motors, setting a target price of ₹720, indicating an 11% upside from the current market price of ₹648.90 (as of March 11). The brokerage remains cautious about volume performance in FY26, citing the discontinuation of Jaguar’s internal combustion engine (ICE) models as a potential headwind.
However, Nuvama noted that JLR remains on track to achieve its FY25 EBIT margin guidance of 8.5%, providing some stability to earnings. Additionally, while tariff impositions could impact JLR’s exports, the brokerage believes price hikes could offset the negative impact, helping Tata Motors maintain profitability.
Despite the near-term challenges, analysts will be closely watching JLR’s strategic transition and pricing strategies as key drivers for the company’s long-term performance.
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.
