ICICI Securities Backs Tata Motors, Sets Target Price at Rs 831 {update}

• Jaguar Land Rover (JLR) Growth: The U.S. market remains strong for JLR, while the European market is showing signs of recovery.
• India Passenger Vehicles (PV): Tata Motors is gearing up for multiple new launches across various powertrains, including Sierra and Harrier. It also plans to reposition models like Curvv and Altroz to strengthen its portfolio.
• India Commercial Vehicles (CV): The company is actively working on revamping its Small Commercial Vehicle (SCV) segment, addressing key challenges to improve its market presence.
• Profitability Outlook: Tata Motors has reaffirmed its EBIT margin guidance of 10% for Q4FY25, signaling steady financial health.

Investment Outlook

Following the recent dip in Tata Motors’ stock price, ICICI Securities has upgraded its rating from ‘Add’ to ‘Buy’. The price target of Rs 831 is based on a Sum-of-the-Parts (SoTP) valuation, implying 11x/2.4x FY27E India/JLR EV/EBITDA.

With strategic launches, market recovery, and strong profitability guidance, Tata Motors appears well-positioned for growth. Investors looking for long-term potential may find the current price correction an attractive entry point.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.