Tata Motors Ltd. to “buy” from its earlier rating of “hold” on Monday, March 17.
However, the brokerage has cut its price target on the stock to ₹840 from its earlier projection of ₹930. The revised price target implies a potential upside of 29% from current levels.
HSBC wrote in its note that the valuations for Tata Motors
, after a de-rating in the last two to three quarters, now look reasonable, with Jaguar Land Rover (JLR) now trading at 1.8 times financial year 2026 Enterprise Value-to-EBITDA (EV/EBITDA), which is the lower end of the historical average.
The brokerage also anticipates a recovery in the margin profile for Tata Motors owing to a reduction in discounts and warranty costs in JLR, along with a recovery in the domestic Small Commercial Vehicles business.
JLR achieving its guidance in the March quarter is a re-rating trigger and new launches in the domestic Passenger Vehicles market should help grow its market share as well, HSBC wrote in its note.
Shares of Tata Motors have corrected 45% from their peak of ₹1,179, which they hit on July 30, 2024. The stock has also declined 12% so far in 2025 and is looking to rebound from its 52-week low.
Tata Motors’ board will also be meeting on March 19 to consider raising funds to the tune of ₹2,000 crore through the issue of Non-Convertible Debentures (NCDs).
Out of the 34 analysts that have coverage on Tata Motors, 21 of them have a “buy” rating, eight of them say “hold”, while five of them have a “sell” rating. A consensus estimate of analysts projects a potential upside of 25% from current levels.
Shares of Tata Motors ended 2% lower on Thursday at ₹654.7.
