Tata Motors share price advances 4% on strong financial projections
Tata Motors stock snaps losing streak, gains 3.5% on Nifty 50
Tata Motors' stock gained 4% on March 12 after the company’s CFO provided optimistic guidance on Jaguar Land Rover (JLR) and domestic operations.
Key Takeaways
- The CFO confirmed that JLR will meet its 10% EBIT margin guidance for Q4 and aims to become net debt-free by the end of the financial year, boosting investor confidence.
- Tata Motors is outperforming in the US and China through JLR, while the European and UK markets are showing signs of improvement. The company is successfully premiumising its JLR and Commercial Vehicles businesses, though Passenger Vehicles still need improvement.
- Nomura, Macquarie, and CLSA maintain bullish ratings on Tata Motors, with price targets ranging from ₹826 to ₹930. The stock rose 3.5% to ₹669.5 and is up 10% from its 52-week low.
JLR’s Performance and Financial Outlook
Tata Motors' CFO reassured analysts that Jaguar Land Rover will meet its Q4 EBIT margin guidance of 10% and become net debt-free by the end of the financial year. This marks a significant milestone in the company’s financial stability and growth strategy, reports CNBC TV-18.
Tata Motors Ltd (TAMO) share price dynamics (2021 - Mar 2025) Source: TradingView
The CFO also highlighted JLR’s strong performance in the US and China, which has been instrumental in maintaining the company’s positive outlook despite global economic challenges.
Regional Market Conditions and Business Premiumisation
Tata Motors is seeing better-than-expected demand in the European Union and an improving market in the UK. The company’s strategy of premiumisation is progressing well for JLR and its domestic Commercial Vehicles segment, though its Passenger Vehicle business still requires further development.
In the domestic market, the company remains focused on improving margins in the Commercial Vehicles segment and aims to strengthen its market share in the small CV category.
Brokerage Ratings and Future Projections
Leading brokerage firms remain optimistic about Tata Motors' growth potential. Nomura predicts volume growth of 4% in FY26 and 6% in FY27 and maintains a "buy" rating with a price target of ₹861.
Macquarie rates the stock as "outperform" with a target of ₹826 per share, while CLSA recently added Tata Motors to its "high-conviction outperform" list with a revised target of ₹930.
On March 12, Tata Motors' stock rose 3.5% to ₹669.5, making it one of the top gainers on the Nifty 50 index. The stock has climbed 10% from its 52-week low of ₹606, reflecting growing investor confidence.
Tata Motors' positive outlook, driven by JLR’s strong performance and strategic premiumisation, has earned the company bullish ratings from major brokerages. With promising market conditions and a focus on margin improvement, Tata Motors is well-positioned for future growth.
Additionally, shares of One 97 Communications Ltd (Paytm) surged 5.34% on Tuesday, closing at Rs 700.70 on the BSE despite a broader market downturn.
