Tata Motors shares get an upgrade from HSBC; here is a key re-rating trigger

HSBC wrote in its note that the valuations for Tata Motors

after a de-rating in the last two to three quarters, now look reasonable, with Jaguar Land Rover (JLR) now trading at 1.8 times financial year 2026 Enterprise Value-to-EBITDA (EV/EBITDA), which is the lower end of the historical average.
The brokerage also anticipates a recovery in the margin profile for Tata Motors owing to a reduction in discounts and warranty costs in JLR, along with a recovery in the domestic Small Commercial Vehicles business.
JLR achieving its guidance in the March quarter is a re-rating trigger and new launches in the domestic Passenger Vehicles market should help grow its market share as well, HSBC wrote in its note.Shares of Tata Motors have corrected 45% from their peak of ₹1,179, which they hit on July 30, 2024. The stock has also declined 12% so far in 2025 and is looking to rebound from its 52-week low.

Tata Motors’ board will also be meeting on March 19 to consider raising funds to the tune of ₹2,000 crore through the issue of Non-Convertible Debentures (NCDs).

Out of the 34 analysts that have coverage on Tata Motors, 21 of them have a “buy” rating, eight of them say “hold”, while five of them have a “sell” rating. A consensus estimate of analysts projects a potential upside of 25% from current levels.

Shares of Tata Motors ended 2% lower on Thursday at ₹654.7.