Shares of Tata Motors Limited remained in focus of investors during trading on Thursday. Shares of the company gained more than 1%, reaching an intraday high of ₹809.95. Earlier, the previous closing price of the share was ₹794.85.
Brokerage firms’ view: Tata Motors’ future
Macquarie estimates: potential growth of 60%
- Macquarie has given ‘outperform’ rating on Tata Motors shares.
- The firm has set a target price of ₹1278 on the stock, which is 60% above current levels.
- Macquarie believes that the company has huge growth potential at its current price.
Morgan Stanley: Stable performance forecast
- Morgan Stanley has set a target price of ₹ 920 on this stock.
- The firm has given it an “Equalweight” rating.
- According to the brokerage, JLR (Jaguar Land Rover) wholesales were better than their estimates in the quarter.
- Morgan Stanley expects:
- JLR’s EBIT margin will be 9.6% in the current quarter.
- Achieving the FY2025 margin target of 8.5% will require an EBIT margin of 9.5% in the fourth quarter.
- Margin guidance for FY2026 will be the key trigger.
Nomura: Potential rise of 25%
- Nomura has “buy” rating on Tata Motors and has a target price of ₹990 on the stock.
- The firm in the third quarter:
- Free cash flow is expected to be $250 million.
- Net debt is projected to reduce from ₹22,000 crore (₹60 per share) in Q2 to net cash of ₹86 per share by FY2027.
- Nomura believes Tata Motors’ valuation at an enterprise value of 4.2x EBITDA is attractive.
Analysts’ Opinion: Opportunities for Investors
- Of the 36 analysts covering Tata Motors:
- 22 gave it a ‘Buy’ rating.
- 9 gave it a ‘Hold’ rating.
- 5 gave it a ‘Sell’ rating.
Past performance and future trends
- Shares of Tata Motors closed at ₹794.85 on Wednesday, registering a marginal gain of 0.3%.
- Owing to strong quarterly results, JLR’s superior performance and attractive valuations, the stock remains a promising option for investors.
