BOFA Securities has reiterated its ‘Neutral’ stance on Tata Motors with a target price of ₹735 per share, indicating a modest upside potential from the current market price of ₹673.25. The assessment follows a recent CFO call where the company addressed concerns surrounding potential tariffs, noting that while it’s early to react, a complete supply chain overhaul is unlikely. Tata Motors outlined a mitigation strategy centered on premiumization, cost efficiency, pricing strategies, and exploring alternative markets.
On Jaguar Land Rover (JLR), the brokerage noted that demand remains resilient. It expects a supportive model cycle beginning in the second half of the year and highlighted positive margin levers, including lower warranty expenses, reduced variable marketing expenses (VME), and favorable product mix.
In the passenger vehicle segment, the company guided for an industry growth of 5–6% in FY26 and aims to gain market share through new launches. Meanwhile, the commercial vehicle segment continues to deliver solid margins and free cash flow. The planned demerger of Tata Motors’ businesses is expected to unlock additional value over time.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
