Tata Motors Stock Forecast: Brokerage Predicts ₹720 Target in 12 Months
Tata Motors Stock: New Rating by Brokerage Means it Can Rise to ₹720 in a Year
A new rating comes in for cars and issues a rating on Tata Motor, one of India top autos makers from Nuvama Brokerage. The stock has been rated as ‘REDUCE’ by the firm in line with its performance in the sector. The brokerage has a price target of ₹720 for Tata Motors within a period of 12 months, while the current price of the stock is ₹648. That implies a potential return of around 11% over the next year.
JLR’s Growth Opportunities And Challenges
A recent interaction by Nuvama Brokerage’s team with Tata Motors’ Group CFO. PB Balaji, provided the brokerage a better clarity on the company’s outlook moving forward. According to the report, Jaguar Land Rover (JLR) will successfully achieve EBIT margin of over 8.5% in FY 2025. Also, we’re hopeful that JLR will soon turn net cash positive. FY 2026 may face some challenges, with the planned dropout of Jaguar models and weaker market performance in China Despite these challenges, the American automotive industry is expected to grow faster than the general market, as Land Rover sales are expected to exceed the figures.
U.S. Tariffs on JLR: Is it Possible?
One of JLR’s big worries is U.S. tariffs on European vehicle imports. If China imposes such tariffs, JLR’s sales could take a hit. As a result, the company will probably look to raise its prices and reduce its costs to recover lost income.
Tata Motors Plan for FY26 in India
Tata Motors plans to consolidate its position in the passenger vehicle (PV) segment in the Indian market. The rebranding of Curvv is a key driver of the company’s growth strategy, alongside the expected arrival of Harrier EV and Sierra models. Tata Motors is also looking to expand it’s service network to give better customer experience which will eventually lead to higher sales.
Predicts a Bullish Future – Nuvama Brokerage
Tata Motors’ revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) are estimated to grow at a meagre compound annual growth rate (CAGR) of just 2 per cent in FY 2025 to FY 2027, as per Nuvama Brokerage. As a result of the above, the brokerage has retained its ‘REDUCE’ rating on the stock, advising investors to remain cautious in the near term.
Learn More : Tata Motors Share Price Target 2025,2026,2027,2028,2029,2030,2035,2040,2045,2050
Final Thoughts
While Tata Motors has several positive developments underway, including its EV strategy and JLR’s financial turnaround, some hurdles loom large. Global trade policies and demand trend would be the key factors to watch out for, along with the company’s execution of its way forward, before making an investment decision
