The car sector accounts for roughly 6 p.c of India’s GDP, with exports reaching 4.5 million models in FY24, together with 6,72,105 passenger automobiles and three.45 million two-wheelers. Over the previous 4 years, the sector has attracted $36 billion in overseas direct funding (FDI), highlighting India’s rising prominence within the world automotive trade.
Worth Motion
The shares of Tata Motors Ltd, with a complete market capitalization of Rs 2.50 Lakh Crore on Wednesday, had been buying and selling at Rs 681.75 per share, which was 0.25 p.c greater than the earlier closing value of Rs 680.05.
The shares are at the moment buying and selling round 12.5 p.c greater than its 52-week low of Rs 606 per share. The shares of Tata Motors Ltd generated a three-year return of 56.3 p.c and a stellar 865.3 p.c return within the final 5 years.
Administration Steerage
The CFO of Tata Motors not too long ago assured analysts throughout an analyst assembly that Jaguar Land Rover (JLR) will meet its Q4FY25 EBITDA margin steering of 10 p.c and can be internet debt-free by the top of the monetary yr.
He highlighted robust efficiency in China and the US, favorable demand within the European Union, and continued enchancment within the UK market. Whereas the passenger car section requires additional progress, JLR’s premiumisation and the business car section in India are advancing effectively. The corporate goals to keep up market share within the small CV section whereas focusing on margin enhancements within the home CV section.
In its India PV enterprise, the corporate has deliberate a number of launches throughout completely different powertrains, together with the Sierra and Harrier, together with a repositioning of the Curvv and Altroz. In its India CV enterprise, Tata Motors is engaged on revamping its SCV section by addressing key challenges.
Brokerage Targets
Final week, Nomura gave Tata Motors a “purchase” ranking with a goal value of Rs 861 per share, it estimates that quantity progress can be flat, with 4 p.c YoY progress and 6 p.c YoY progress for the monetary years 2025, 2026, and 2027, respectively.
Macquarie set a goal value of Rs 826 per share with an “Outperform” ranking, whereas CLSA has the very best goal at Rs 930 per share and added the inventory to its “high-conviction outperform” listing.
On Monday, March 17, 2025, Worldwide Brokerage HSBC upgraded its ranking to “purchase” from its earlier ranking of “maintain”, however the brokerage lower its value goal on the inventory from Rs 930 per share to Rs 840 per share. The revised value goal implies an upside potential of 23 p.c from its present ranges.
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Brokerage Rationale
HSBC highlighted that Tata Motors Ltd’s valuations seem cheap, particularly after a de-rating over the previous two to a few quarters. Jaguar Land Rover (JLR) is at the moment buying and selling at 1.8 instances the FY26 Enterprise Worth-to-EBITDA (EV/EBITDA), which is on the decrease finish of its historic common.
HSBC additionally anticipates a margin restoration for Tata Motors, pushed by diminished reductions and guarantee prices at JLR, in addition to enhancements within the home Small Industrial Autos enterprise. The agency famous that if JLR meets its steering within the March quarter, it might set off a re-rating, and the corporate’s new launches within the home Passenger Autos market ought to additional increase its market share.
Month-to-month Gross sales
For February 2025, the Whole Home Gross sales of Tata Motors Ltd fell by 9 p.c YoY from 84,834 models in February 2024 to 77,232 models in February 2025. Their whole Industrial car gross sales dropped by 7 p.c YoY from 35,085 models to 32,533 models, and the gross sales of the entire Passenger automobiles section together with EV, stood at 46,811 models, which is a decline of 9 p.c YoY.
Enterprise Segments
Tata Motors’ automotive operations are diversified throughout business automobiles, passenger automobiles, luxurious automobiles via Jaguar Land Rover (JLR), and monetary providers for car financing. The Passenger Autos (PV) section contains automobiles, utility automobiles, and vans, whereas the Industrial Autos (CV) section focuses on vehicles, buses, and different business automobiles. Moreover, the corporate affords luxurious automobiles below the JLR model and gives a variety of financing options via Tata Motors Finance.
Market Share
It’s the dominant participant within the home CV section, with a market share of round 37.7 p.c in 9MFY25. On the PV entrance, the corporate has seen a major turnaround in operations, led by new product launches, product re-engineering, and footprint enlargement, resulting in elevated reliability and acceptance amongst clients. In 9MFY25, the market share for the PV section was round 13.3 p.c. TML additionally advantages from its early-mover benefit within the EV enterprise, the place its market share stood at 61 p.c for a similar interval.
Financials
The corporate reported a slight enhance of two.7 p.c YoY in Income from Operations from Rs 110,577 Crore in Q3FY24 to Rs 113,575 Crore in Q3FY25. Their Web Earnings declined by 23 p.c YoY from Rs 7,145 Crore to Rs 5,578 over the identical interval.
About Tata Motors Ltd
Tata Motors Ltd is a number one world vehicle producer, a part of the Tata Group, providing a various portfolio of automobiles, together with automobiles, vehicles, buses, and protection automobiles. Its operations span throughout international locations like India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia.
Written By Adhvaitha Nayani
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