Tata Motors The shares fell for the fourth consecutive day. With this decline, the stock has turned into negative returns since the beginning of this year.
Most brokerages tracking the stock have significantly reduced Tata Motors’ price targets and earnings per share (EPS) estimates despite an upgrade by CLSA following its September quarter results.
CLSA Now a target of ₹ 968 has been given for Tata Motors. Also, the brokerage says that it has upgraded the stock after the recent improvement. Tata Motors shares have fallen 32% from recent highs. However, Tata Motors has maintained the EBIT margin guidance for JLR at around 8.5% for this fiscal year and 10% for fiscal 2026.
Nomura has maintained its “buy” rating on Tata Motors, but cut the target price of the stock to ₹900 from ₹1,303 per share. The company expects India’s commercial vehicle business to improve in the fourth quarter of this financial year, and also expects JLR’s recovery in the second half. The brokerage also said that JLR’s performance has been better than its peers in the markets and JLR maintaining its guidance is a major positive point, especially despite the concerns raised by global OEMs.
Jefferies has also maintained its “buy” rating on the stock, but like Nomura, cut its target price to ₹1,000 from ₹1,330. Jefferies has cut Tata Motors’ EPS estimates for fiscal years 2025-2027 by 2% to 9%. However, UBS has maintained its “sell” recommendation on the stock with a target price of ₹780. It said in its note that the quality of the reported EBIT was also disappointing, as the company had previously revised the useful lives of its ICE models, leading to depreciation of less than £76 million.
Free cash flow guidance for JLR is now £1.3 billion, up from £1.8 billion previously. Of the 36 analysts covering Tata Motors, 22 still have a “buy” rating on the stock, nine said “hold”, while five have a “sell” recommendation. Shares of Tata Motors are trading down 2% at ₹788.6 on Tuesday, well below its recent peak of ₹1,179.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.