Shares of Tata Motors Ltd, the demerged commercial vehicles (CV) business of the Tata group, rose nearly 4 percent in morning trade on June 24 after multiple brokerages reiterated their positive outlook on the company. Analysts cited strong industry demand, market-share gains and margin expansion prospects. The stock traded at Rs 414.40, up 3.6 percent during the session. Since its listing in November 2025, the stock has gained nearly 59 percent from its pre-listing price discovery level of Rs 260 per share.

CLSA maintained its 'Outperform' rating on Tata Motors (CV) stock with a target price of Rs 527 per share, implying potential upside of more than 27 percent from current levels. The brokerage expects domestic commercial vehicle industry volumes to grow in the high-single digits in FY27, supported by freight growth and fleet expansion.

The brokerage also raised its market-share target for Tata Motors' CV business to 40 percent from 36 percent earlier, while expecting the company to sustain double-digit EBITDA margins through the cycle. CLSA believes non-cyclical businesses could grow 1.5 times faster than the core operations, helping reduce earnings volatility. It expects return on capital employed (RoCE) of 30-35 percent and free cash flow generation of 7-9 percent of revenue.

HSBC also remained bullish on the stock, maintaining a 'Buy' rating with a target price of Rs 490 per share. The brokerage said near-term commercial vehicle demand remains strong, with momentum continuing in the medium and heavy commercial vehicle (M&HCV) segment. It also sees signs that the light commercial vehicle (LCV) market has bottomed out and is entering a recovery phase.

Nomura retained a 'Neutral' rating and a target price of Rs 402 per share. The brokerage acknowledged the company's improving fundamentals. It said market-share gains and margin discipline remain key priorities for management, while the target of achieving 40 percent market share by FY28 remains unchanged.

Nomura also highlighted management's confidence in maintaining double-digit EBITDA margins through the cycle, along with RoCE of 30-35 percent and free cash flow margins of 7-9 percent. The brokerage expects non-cyclical businesses to outgrow the core commercial vehicle operations and noted that the company is targeting 3 million connected vehicles by FY30.

Brokerages also pointed to the proposed acquisition of Iveco as a potential long-term growth catalyst. CLSA expects the transaction to close in the second quarter of FY27, while Nomura said the deal could provide sourcing benefits and support international expansion opportunities.

The stock was listed on exchanges in November 2025 following the demerger of Tata Motors' commercial vehicle and passenger vehicle businesses. The passenger vehicle business now trades separately as Tata Motors Passenger Vehicles Ltd.