Shares of Tata Motors fell nearly 6 per cent after CLSA downgraded the stock to outperform at a lowered target price of ₹765 per share from ₹930.

This indicates that the brokerage firm has removed the stock from high conviction outperform list. It has also slashed JLR’s EBITDA estimate for FY26. It added that the JLR volumes may drop by 14 per cent y-o-y in FY26.

The auto sector witnessed continued selling pressure following Trump’s tariffs.

CLSA says Tata Motors’ EBIDTA margins could fall to 7 per cent in FY26-27.

However, with the commercial vehicles cycle bottoming in FY26, the brokerage has rolled over Tata Motors’ CV valuation to FY28, which could add ₹127 to its share price. It would further cushion the valuation against demand risks due to US tariffs, CLSA added.

Tata Motors sales in the domestic and international market for Q4FY25 stood at 252,642 units, nearly 4.6 per cent lower from 265,090 units in Q4 FY24.

Analysts of InCred Equities have maintained reduce rating on Tata Motors at ₹661 target price stating that the weakness in sales volume is not fully captured by their valuations.

The stock traded 5.34 per cent lower at ₹619.05 as at 10.18 am, close to the day’s low of ₹616.05.

Nifty Auto index was down close to 3 per cent at 20,558.35. Major losers also include Bharat Forge, Hero Motocorp, Bosch, Maruti, MRF and Motherson.

Published on April 4, 2025