Buy Tata Motors; target of Rs 1099: Sharekhan

Sharekhan's research report on Tata Motors

JLR has maintained its full-year guidance despite subdued performance in Q2FY2025. Domestic business is expected to follow industry trends in the near term. CV business is sustaining its double-digit EBITDA margin.

Outlook

We retain our BUY rating on TML with a revised PT of Rs. 1,099, based on expectations of continued improvement in JLR, PV, and CV businesses as well as reduced net automotive debt. The stock trades at a P/E multiple of 12.2x and EV/EBITDA multiple of 5.3x its FY2027E estimates.