Neutral TATA Motors; target of Rs 341: Motilal Oswal

Motilal Oswal's research report on TATA Motors

Tata Motors has reported the financials of the demerged entity for the first time. Given the restated financials for prior years, these are strictly not comparable to our estimates. 2QFY26 operating margin was in line with our estimate at 12.4%. The key concern in TTMT CV business has been its gradual loss of market share across key segments. Particularly worrisome is the market share loss in LCV goods from a high of 40% in FY22 to 27% now, and the gap with the current market leader MM is rising with every passing year. Given the lack of any visible triggers, we rate Tata Motors CV business at Neutral with a TP of INR341 per share – we value the core business at 11x Sep’27E EPS (in line with peers) and add INR12 per share for its stake in Tata Capital.

Outlook

We rate Tata Motors CV business at Neutral with a TP of INR341 per share – we value the core business at 11x Sep’27E EPS (in line with peers) and add INR12 per share for its stake in Tata Capital.