Tata Motors shares rally over 3% as brokerages remain confident of JLR meeting targets- Grow Mudra

Tata Motors shares rally over 3% as brokerages remain confident of JLR meeting targets

12 Mar , 2025 By : Debdeep Gupta

Shares of Tata Motors are higher by over 3% on March 12 after a slew of positive brokerage notes sparked investor interest, sending it higher in the pack of Sensex gainers, as well as lifting the BSE Auto index. The broad view was that JLR is on track to meet FY25 metrics, and volume growth could pick up going forward with tariff impact mitigated by price hikes.

Nomura has recommended a 'Buy' rating on Tata Motors with a target price of Rs 861 per share, while Macquarie has given an 'Outperform' call with a target of Rs 826 per share.

The stock of Tata Motors is a 'High Conviction Outperform' for CLSA, which expressed confidence that JLR will be achieving FY25 targets, assigning the stock a price target of Rs 930 per share. Nuvama issued a 'Reduce' call on Tata Motors with a target price of Rs 720 per share, adding that tariff imposition on JLR can be offset by price hikes.

Nomura remains positive on Tata Motors and said that the management is confident of Jaguar Land Rover's luxury journey and the FY25 EBIT margin target.

Macquarie note said that JLR is on track to achieve a net cash balance sheet by FY25, with domestic commercial vehicle (CV) margin improvements aligning with expectations. Additionally, the company is focusing on enhancing service quality in the domestic passenger vehicle (PV) segment.

Goldman Sachs expects JLR’s volume growth to pick up after the ramp-down of Jaguar’s internal combustion engine (ICE) models. It also anticipates clarity on US tariffs by April and mentions Tata Motors’ ongoing efforts to reorganize its small commercial vehicle business in India.

CLSA remains optimistic, with JLR confident of meeting its FY25 targets and expecting volume growth in both Europe and the US. It also points out that JLR is currently trading below its normative multiple.

Nuvama has reported that JLR is on track to achieve its FY25 EBIT margin guidance of 8.5%. However, it anticipates volume stress in FY26 due to the discontinuation of Jaguar models. The potential impact of tariff imposition on JLR could be mitigated by price hikes.