Tata Motors Share Price | CLSA upgrades rating to ‘high conviction outperform’, sees 36% upside

Brokerage firm CLSA has upgraded its rating on Tata Motors to ‘high conviction outperform’ and kept its target price unchanged at ₹930 per share an upside of 36.2% from the previous day’s closing price of ₹682.50 apiece.

The brokerage said the company’s adverse near-term outlook is giving scope to enter at a favourable valuation.

It said the stock has corrected 40% in the last six months on account of JLR’s weak demand outlook across key markets and domestic heavy commercial vehicles and passenger vehicles for FY26.

In addition, the risk of import tariffs getting implemented in the US from Europe and that impacting JLR sales in the US, also added to the correction it said.

The brokerage believes that JLR at present is trading 1.2 times its FY27CL EV/EBITDA, which is way below its normative multiple of 2.5 times. This is after building in 4% volume CAGR in FY25-27CL and with a mean EBIT margin of 8.8% in FY26-27CL, it said.

At the current price, the implied/share value of JLR is ₹200 compared to the brokerage’s target valuation of ₹450 per share in SOTP, thus giving enough cushion against the impact of US tariff hike and a weaker than expected demand/margin, it added.

Tata Motors shares ended the previous trade session 0.6% lower at ₹682.5 apiece. It has fallen 11.86% in the past month and 37.25% in the last six months.

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