Neutral TATA Motors; target of Rs 431: Motilal Oswal

Motilal Oswal recommended Neutral rating on TATA Motors with a target price of Rs 431 in its research report dated January 30, 2026.

Broker Research

February 02, 2026 / 16:10 IST

Neutral

Motilal Oswal's research report on TATA Motors

Tata Motors (TMCV) 3QFY26 PAT at INR15.9b was below our est. of INR18.4b due to lower-than-expected margin at 12.8% (est. 13.2%). Margin pressure was caused by higher input costs. The key concern for TMCV has been its gradual loss of market share across key segments. Further, its recent acquisition of Iveco would expose it to the ongoing global macro uncertainties, thereby driving a potential de-rating, if demand does not improve anytime soon. We have already factored in a pick up in domestic CV demand in our estimates (we estimate 9% volume CAGR over FY25-28E). We also factor in margins to remain stable at 13% over FY25 28E. However, after the recent rally, the stock at 24.1x FY27E and at 21.8x FY28E EPS appears fairly valued. Maintain Neutral with a TP of INR431 per share – we value the core business at 13x Dec’27E EV / EBITDA (in line with peers) and add INR13 per share for its stake in Tata Capital.

Outlook

The stock at 24.1x FY27E and at 21.8x FY28E EPS appears fairly valued. Maintain Neutral with a TP of INR431 per share – we value the core business at 13x Dec’27E EV/EBITDA (in line with peers) and add INR13 per share for its stake in Tata Capital.

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