Shares of Tata Motors Passenger Vehicles remained in focus on Tuesday, May 27, after global brokerage Goldman Sachs highlighted improving demand trends, strong Jaguar Land Rover (JLR) profitability, and rising electric vehicle demand following the ongoing West Asia crisis.
The stock was trading at Rs 391.95, up 1.65% during the session. It touched an intraday high of Rs 395.90 and a low of Rs 383.70. The stock’s 52-week range stands at Rs 294.30 to Rs 419, while the company’s market capitalisation was around Rs 1.37 lakh crore.
Goldman Sachs said the Indian passenger vehicle industry is expected to grow 10% in FY27. The brokerage also noted that JLR’s EBITDA margin came in ahead of estimates at 14%.
The brokerage highlighted that the Middle East contributes nearly 6% of JLR revenues, while inventory levels remain low. Goldman Sachs added that Tata Motors plans three new JLR launches during H2FY27 and is targeting GBP 1.7 billion in cost reductions to lower breakeven volumes.
The brokerage also pointed out that India’s passenger vehicle business is facing commodity cost inflation of around 5-7%. However, Tata Motors has already taken price hikes and cost reduction measures to offset the pressure.
Interestingly, Goldman Sachs noted that electric vehicle demand has risen 25-30% following the West Asia crisis, providing an additional tailwind for the company’s EV business.
Management is also planning two new nameplates along with multiple ICE and EV facelifts in FY27.
Tata Motors share price target
Goldman Sachs remains constructive on Tata Motors, citing strong JLR margins, rising EV demand, upcoming launches, and ongoing cost reduction measures as key positives for the stock.
The brokerage believes Tata Motors could continue benefiting from industry growth, improving product mix, and operational efficiencies despite commodity inflation challenges.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.