Tata Motors’ stock jumped 2.8% following favorable brokerage reports, with analysts assessing the company’s growth trajectory amid Jaguar Land Rover’s (JLR) transition and domestic market performance. As of 9:30 AM, the shares were trading 2.53% higher at Rs 664.45.
CLSA View
CLSA remains highly bullish, reiterating its ‘High Conviction Outperform’ rating with a target price of ₹930. The brokerage sees strong JLR volume growth in Europe and the US, backed by rising demand. With JLR trading below its normative multiple, CLSA believes the stock has potential for re-rating as earnings improve.
Nuvama View
Nuvama has maintained a ‘Reduce’ rating with a target price of ₹720. The brokerage remains wary of Tata Motors’ FY26 volume performance due to Jaguar’s ICE model discontinuation. However, JLR is on track to achieve its FY25 EBIT margin target of 8.5%, ensuring earnings stability. Tariff impositions could affect exports, but price hikes may offset potential losses.
Macquarie Outlook
Macquarie reaffirmed its ‘Outperform’ rating with a higher target price of ₹826. It expects JLR to achieve a net cash balance sheet by FY25, driving financial recovery. Tata Motors’ domestic commercial vehicle margins are improving, reflecting strong cost control and operational efficiency. Enhancements in passenger vehicle services could further boost its market standing.
Goldman Sachs View
Goldman Sachs maintained a ‘Neutral’ rating with a target price of ₹690. It remains cautious about JLR’s volume growth post-Jaguar ICE ramp-down and awaits clarity on US tariffs in April. The firm also noted Tata Motors’ efforts to revamp its small commercial vehicle segment and its long-term EV strategy, with key developments expected by FY27.
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