Tata Motors stock snaps three-day fall as Nomura sees nearly 14% upside- Grow Mudra

Tata Motors stock snaps three-day fall as Nomura sees nearly 14% upside

04 Jun , 2025 By : Debdeep Gupta

Shares of Tata Motors gained over a percent to Rs 714 in morning trade on June 4, snapping its three-day decline even as international brokerage firm Nomura maintained its neutral rating on the counter.

Analysts at the firm have assigned a target price of Rs 799 per share for India's leading EV player. The price reflects an upside potential of 13.5 percent from the last closing price of Rs 704. The brokerage expects the Harrier EV to boost electric vehicle penetration by offering an attractive price point.

The positioning of the Harrier EV is comparable to Mahindra & Mahindra’s BEVs. Nomura estimates EV penetration to rise to 4 percent in FY26 and 5 percent in FY27, up from 2.3 percent in FY25. The average price of entry-level diesel automatic variants in the high SUV segment is similar to that of the Harrier EV.

The company's vehicle sales nosedived 8.6 percent year-on-year in May 2025, as weakness in the domestic market weighed on overall performance. The automaker sold 70,187 vehicles across domestic and international markets last month, compared to 76,766 units in May 2024.

In the domestic market, sales dropped 10 percent to 67,429 units, down from 75,173 units a year ago. Commercial vehicle sales declined 5 percent to 28,147 units, reflecting a broader moderation in freight demand and infrastructure movement, official data showed.

Within the commercial segment, domestic sales of medium and heavy commercial vehicles (MH&ICV), which include trucks and buses, came in at 12,406 units, slightly below last year's 12,987 units. However, total MH&ICV volumes, including exports, edged up to 13,614 units from 13,532 units in the year-ago period.

The company reported a 51 percent fall in net profit for the quarter ended March 2025. The Nexon maker had posted a consolidated net profit of Rs 17,407 crore in the same quarter last fiscal. Its consolidated total revenue from operations increased 0.4 percent at Rs 1,19,503 crore against Rs 1,19,033 crore in the year-ago period, thus missing estimates.

Meanwhile, the sales volumes at JLR rose 1.1 percent in the quarter, helped by strong demand for its highly profitable SUVs in North America and Europe.

At about 9:40 am, shares of the company were trading at Rs 712, higher by 1.2 percent from the last close on the NSE. Tata Motors' share price has risen 13 percent in the last three months.