India’s passenger automotive market is valued at USD 42.72 billion in 2024, projected to achieve USD 53.04 billion by 2029. Whereas general passenger car gross sales declined by 3.4% in September, utility automobiles grew by 6.7%. SUVs dominate with a 41% market share, with gross sales anticipated to achieve 1.37 million items.
Worth motion
With a market capitalization of Rs 2.52 lakh crore, the shares of Tata Motors Ltd closed at Rs 687.40 per share, elevated round 0.85 % as in comparison with the earlier closing value of Rs 681.60 apiece.
Brokerage goal
CLSA, one of many well-known brokerages globally, gave a ‘purchase’ name on the car inventory with a goal value of Rs 930 apiece, indicating a possible upside of 35 % from Wednesday’s value of Rs 687 per share.
Brokerage rational
As per the CLSA, that is a pretty entry level regardless of near-term challenges. Jaguar Land Rover (JLR) trades at 1.2x FY27 EV/EBITDA, nicely under its normative 2.5x a number of. On the present inventory value, JLR’s implied worth is round Rs 320 per share, with a goal valuation of Rs 450 in a sum-of-the-parts evaluation.
Moreover, this helps mitigate dangers like US tariff hikes and weaker demand or margins. CLSA additionally anticipates a cyclical restoration within the medium and heavy industrial car section from FY27, which might start influencing valuations within the coming quarters.
In the meantime, In Q3 FY25, the corporate reported a 22% YoY drop in consolidated internet revenue to Rs 5,451 crore, lacking estimates. Weaker margins and subdued Jaguar Land Rover (JLR) volumes impacted efficiency, regardless of sequential enchancment. Income rose 2.7% YoY to Rs 1,13,575 crore, pushed by modest gross sales progress.
Moreover, the section’s income fell 4.3% to Rs 12,354 crore, however the EBITDA margin improved by 120 bps to 7.8% as a consequence of cost-cutting and PLI incentives. Private EV gross sales grew 19% YoY, whereas fleet gross sales declined following the expiry of FAME II subsidies, impacting general efficiency.
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Section Efficiency
Tata Motors’ CV section noticed an 8.4% YoY income decline to ₹18,400 crore, however margins improved with cost-saving and PLI advantages. Vans and buses gained market share, whereas PV gross sales hit document highs, boosting EV penetration to 24%. Sturdy SUV demand and festive gross sales drove progress.
New improvement
Tata Motors launched the all-new Sierra and Harrier EV on the Auto Expo, together with new BEVs and hydrogen ICE vehicles. Its Fleet Edge platform now has 760,000+ energetic automobiles, whereas E-Dukaan and Fleet Verse develop quickly. Sustainability efforts embrace Zero Waste certification and decarbonization initiatives.
Administration feedback
Administration stays optimistic a few gradual rise in home demand, pushed by infrastructure spending and new product launches. In the meantime, JLR expects improved wholesales in This fall, depending on retail progress, reflecting constructive market tendencies and potential restoration within the automotive sector.
Firm Profile
Tata Motors Group is a prime worldwide automaker. As a part of the legendary multinational company, the Tata Group, offers the globe with a diversified portfolio of vehicles, sports activities utility automobiles, vehicles, buses, and protection automobiles.
Written by Abhishek Singh
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