Morgan Stanley has maintained an Equal Weight (EW) rating on Tata Motors with a target price of ₹920, reflecting a potential 16% upside from the current market price of ₹795.50.
Key Insights:
- JLR F3Q25 wholesales grew 3% YoY to 104.4k units, a 20% QoQ increase and 2% higher than Morgan Stanley’s estimate of 102k units.
- EBIT margin expectations for JLR in F3Q25 stand at 9.6%, reflecting an 80bps YoY improvement.
- To meet its FY25 EBIT margin guidance of 8.5%, JLR must achieve an EBIT margin of 9.5% (+20bps YoY) in F4Q25.
- The company’s FY25-26 margin guidance for JLR remains a critical factor for its outlook.
Morgan Stanley highlights that mix and leverage are likely to offset the impact of higher incentives, boosting confidence in JLR’s performance and Tata Motors’ earnings trajectory.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
