Tata Motors rises 3%, analysts up target on JLR growth hope

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau

Shares of Tata Motors rose 3.5 percent intraday on Monday as brokerages are bullish on it post September quarter results.

Credit Suisse has maintained outperform rating on the stock with an increased target price of Rs 650 per share. The brokerage states after a massive positive surprise in Q1, JLR's margins held up well declining only 90 basis points. "Despite falling volumes and a poorer geographic mix, the company maintained margins on gross margin gain. At the current currency level, forex can provide a further 100 basis points margin tailwind," it said.

According to the brokerage, Jagaur Land Rover is now heading towards another phase of sustained new launches which should result in volumes returning to a robust double-digit growth trajectory.

HDFC Securities maintains buy with a target price of Rs 626 per share. JLR’s near term operating performance could see volatility and longer term structural story remains compelling

Kotak has raised target price to Rs 680 versus Rs 570 per share. It says JLR margins will be in 18-19 percent range led by product mix.

Revenue from the Tata Motor's British unit JLR  went up by 7.34 percent to Rs 49,160.72 crore in the second quarter this fiscal, as against Rs 45,795 crore in the year-ago period. JLR reported a massive spike in margin to 19.4 percent from 15.3 percent in the year-ago period. However, JLR's net profit also declined to £450 million from £507 million on higher tax provisions and forex adjustments.

Tata Motors' net profit fell by 7 percent to Rs 3,291 crore in the second quarter on higher tax provisions and a steep decline in India sales, even as margins improved at its flagship British arm JLR. The auto major had posted a consolidated net profit of Rs 3,541.86 crore in the September quarter of the last fiscal.

Meanwhile, IIFL also maintains buy rating with a target price of Rs 610, indicating 16.4 percent. JLR is expected to see a sustained robust trend in volumes driven by rising penetration of luxury cars in emerging economies coupled with economic recovery in the western world. IIFL feels that margins are also expected to remain strong on the back of operating leverage and lower discounts due to high contribution newer models.

Emkay retain accumulate rating with an increased target price of Rs 610.

At 10:59 hrs Tata Motors was quoting at Rs 542.00, up Rs 18.20, or 3.47 percent on the BSE.

Posted by Nasrin Sultana