UBS has maintained a ‘Sell’ rating on Tata Motors, setting a target price of ₹760, indicating a negligible upside from the current market price of ₹754.80. The brokerage expressed skepticism over the company’s ambitious Q4 guidance amid an uncertain FY26-27 outlook.
A key concern for Tata Motors remains its JLR (Jaguar Land Rover) business, where a recovery in China is critical. UBS questioned whether the company could achieve a 10% EBIT margin in FY26, given rising costs and demand headwinds in key global markets.
On the domestic front, India’s commercial vehicle (CV) segment is expected to see demand improvement from Q4, but passenger vehicle (PV) margins in internal combustion engine (ICE) models remain weak. Interestingly, UBS noted better margins in the electric vehicle (EV) segment, suggesting a structural shift in Tata Motors’ profitability mix.
With uncertainties around JLR’s China recovery and margin pressures in key segments, UBS remains cautious on Tata Motors’ ability to sustain long-term earnings growth.
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