Accumulate Tata Motors; target of Rs 722: Deven Choksey

Deven Choksey's research report on Tata Motors

Tata Motors’ consolidated revenue declined by 2.5% YoY (-12.6% QoQ) to INR 1,044.1bn, largely in-line with our estimates (-2.1%). The growth was majorly driven by improved product mix, partially offset weaker JLR and domestic volumes. Domestic dispatches fell sharply by 9.1% YoY (-18.2% QoQ) to 297,701 units due to muted demand, while JLR wholesale volume witnessed a decline of 10.7% YoY to 87,286 units, as it was severely impacted by US tariffs and model transitions.

Outlook

We have revised our FY26E/FY27E EBITDA estimates by -10.4%/-6.5% respectively, factoring weaker JLR margins and subdued domestic demand. We have roll-forwarded our valuation basis to Jun’27 estimates. We value Tata Motors on a SOTP basis, implying a target price of INR 722 per share. We maintain our “ACCUMULATE” rating on the stock.