Shares of Tata Motors Limited jumped over 5% to a new record high of Rs 1,084 after international brokerage Nomura upgraded the stock to ‘buy’. Nomura sees several growth opportunities for Tata Motors.
Analysts at Nomura have set a target price of Rs 1,294, indicating a potential 26% increase from the current levels. Over the past month, Tata Motors’ shares have risen by 13%.
Nomura highlights two key factors driving this upgrade: strong performance from Jaguar Land Rover (JLR) and the demerger of commercial vehicles (CVs) from passenger vehicles (PVs), which could unlock more value.
Nomura predicts that the profit margins for India’s largest electric vehicle (EV) maker will increase from 7.8% in FY25 to 8.5%, and then to 10.1% by FY27. By FY30, margins could reach 11-12%, driven by the phase-out of Jaguar’s internal combustion engines and the success of new EV models. Additionally, Tata Motors’ net debt of Rs 1,600 crore in FY24 is expected to turn into net cash of Rs 57 and Rs 140 per share by FY26 and FY27.
“While there are signs of weakness in the demand for passenger vehicles and EVs, upcoming launches like the Curvv (on August 8) and the Harrier EV in FY25 should boost sales,” Nomura said in a recent note.
Around 11 am, Tata Motors’ shares were trading at Rs 1,082, up 5.2% from the previous close on the NSE.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
