Tata Motors Shares In Green After 2 Days As Brokerages See Upto 20% Upside

Tata Motors‘ share price jumped back in the green on Thursday halting its two straight session losing streak.

What Happened: The company’s luxury car subsidiary Jaguar Land Rover (JLR) held its investor day on Wednesday. After the meet, analysts at CLSA maintained its “outperform” rating for the stock with a price target of ₹1,181.

The target indicates an over 20% upside from the stock’s last closing price of ₹977. The brokerage said that the company plans to spend a massive £18 billion (around ₹1.90 lakh crore) over the next four years to continue its electrification journey.

The analysts also highlighted that the company is confident of making major improvements in operations and maintains an EBIT margin of around 10% in FY26. The brokerage also pointed out that the company plans to roll out the new Jaguar and Range Rover electric in FY25.

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Kotak Securities also maintained its “add” rating for the stock with a price target of ₹1,100. The brokerage also reiterated that it sees the company’s journey over FY25-FY27 as being healthy. The brokerage expects the company’s earnings per share to grow by 34.2% in FY25 and by 11.0% in FY26.

The analysts also added that the auto manufacturer is consistently working towards improving its brand appeal and further enhancing the customer experience.

Phillip Capital also maintained its “buy” rating on the stock with a target price of ₹1,169. The brokerage said that the highlight of JLR's investor day was the emphasis on prioritising margins over volumes, aiming for a long-term target of a 15% EBIT margin.

Despite having a robust investment plan for its transition towards electric vehicles (EVs), the company expects to be net debt-free by FY25, the analysts highlighted.

Incred, on the other hand, maintained its “reduce” rating for the stock with a target price of ₹769. The brokerage said that the company’s ambition of improving profitability while also rolling out new launches feels stretched. The long-term EBIT margin guidance at around 15% for FY30 also looks ambitious.

Price Action: Tata Motors’ share price was up 0.92% to trade at ₹986.40 as the markets opened on Thursday.

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