Tata Motors’ stock saw a positive trend on Wednesday as the company’s management expressed confidence in achieving Jaguar Land Rover’s (JLR) FY25 EBIT margin target of 8.5% and becoming net debt-free by the end of the financial year.
Closing 3.18% higher at ₹668.45 on the BSE, Tata Motors’ stock hit an intraday high of ₹671.80.
During an analyst call, PB Balaji, Group Chief Financial Officer of Tata Motors, noted early signs of demand improvement in European and UK markets for JLR. However, he highlighted that China continues to face challenges.
The stock gained momentum as several brokerages cautiously optimistic about it. Macquarie gave an outperform rating with a target price of ₹826, while CLSA added the stock to its high conviction outperform list with a target price of ₹930.
Conversely, Nuvama Institutional Equities maintained a reduce rating with a target price of ₹720, citing potential challenges for JLR in FY26 due to model discontinuations and a challenging outlook in China.
InCred Equities also assigned a reduce rating with a target price of ₹661. Elara Capital reiterated a buy rating with a reduced target price of ₹872, emphasizing the need for JLR to balance premiumisation and volume growth.
JM Financial expects an improvement in the demand environment for domestic commercial vehicles (CV) and passenger vehicles (PV) from FY26. They maintained a buy rating with a target price of ₹860.
Nuvama anticipates FY26 India PV volume growth driven by model repositioning and new launches. ICICI Securities upgraded the stock to buy with an unchanged target price of ₹831, taking note of recent corrections.
Motilal Oswal maintained a neutral stance with a target price of ₹705, citing uncertainties surrounding potential US tariff levies and the margin impact of the EV business ramp-up.
Overall, the sentiment on Tata Motors’ stock remains mixed, with some brokerages optimistic about its future performance while others remain cautious about potential challenges ahead.
