Shares of Tata Motors ended among top gainers of Nifty 50 constituents on Wednesday after the management expressed confidence in meeting Jaguar Land Rover’s (JLR) FY25 EBIT margin guidance of 8.5 per cent, and it will also turn net debt-free by the end of the financial year.
The stock ended 3.18 per cent higher on the BSE at ₹668.45, after hitting an intraday high of ₹671.80.
PB Balaji, Group Chief Financial Officer of Tata Motors, in an analyst call, emphasised that there are early signs of demand improvement in markets like Europe and UK with respect to JLR, while the US remains strong. However, China continues to remain under stress.
The stock gained momentum after a majority of brokerages were cautiously optimistic on the stock. They also emphasised continued focus of government on infra spends remains an industry tailwind for medium-to-long term.
Global brokerage Macquarie has assigned an outperform rating at a target price of ₹826 per share. CLSA recently added the stock to high conviction outperform list at a target price of ₹930.
However, Nuvama Institutional Equities, which retained reduce rating at ₹720 target price, highlighted that JLR’s FY26 volume performance is likely to be stressed due to discontinuance of Jaguar models, and subdued outlook in China region. Nuvama added that the tariff imposition can be offset with price hikes and cost savings.
InCred Equities has also assigned reduce rating at a target price of ₹661, the lowest so far.
Analysts of Elara Capital have reiterated buy rating at a reduced target price of ₹872 from ₹909. The brokerage stressed on monitoring JLR’s balance between premiumisation and volume growth amid weakening global trends and order backlog.
JM Financial expects underlying demand environment to improve from FY26 for domestic commercial vehicles (CV) led by revival in government capex and domestic passenger vehicles (PV) led by new launches and enhanced marketing. The brokerage maintained buy call at an unchanged target price of ₹860.
According to Nuvama, the FY26 India PV volume growth shall be driven by repositioning of Currv model and launch of Harrier EV along with Sierra models.
Acknowledging the recent stock correction, ICICI Securities upgraded the stock to buy from add at an unchanged target price of ₹831.
Motilal Oswal has reiterated neutral stance at a target price of ₹705. The brokerage continues to remain on the sidelines, given the uncertainties around threat from potential US tariff levies, weak global macro conditions, and the ramp-up of margin-dilutive EV business.
