Tata Motors Shares up 1%; CLSA Issues Upgrades
Shares of Tata Motors were up by 1% at ₹688 apiece after CLSA upgraded the stock to a ‘high-conviction outperform' rating from 'outperform'.
Tata Motors Shares up 1%; CLSA Issues Upgrades
Shares of Tata Motors were up by 1% at ₹688 apiece after CLSA upgraded the stock to a ‘high-conviction outperform' rating from 'outperform'. Setting a target price of ₹930, the brokerage implied an upside of 36.3% from the last close of National Stock Exchange. Tata Motors shares have tanked 12% in the last month and are currently down by 50% from its all-time high.
Jaguar Land Rover (JLR) is currently trading at 1.2x FY27 EV/EBITDA, significantly below its normative multiple of 2.5 times. Currently, JLR’s implied per-share value stands at approximately ₹320, compared to a target valuation of ₹450 in a sum-of-the-parts analysis.
Additionally, CLSA expects recovery in the medium and heavy commercial vehicle segment from FY27.
During Q3, Tata Motors reported a net profit of ₹5,451 crore, up 22% YoY, missing analysts estimates. The weak performance can be attributed to weaker margins and subdued Jaguar Land Rover (JLR) volumes. Revenue from operations soared 2.7% YoY to ₹1,13,575 crore.
Notably, the automaker expects the demand to improve gradually on the back of upcoming product launches, stable interest rates and infrastructure investments.
