Tata Motors shares rebound from 52-week low after assuring remarks from CFO on JLR

Shares of Tata Motors Ltd. gained as much as 4% on Wednesday, March 12, after the company’s CFO held an analyst meet on Tuesday after he shared assuring remarks on the road ahead for the passenger and commercial vehicle manufacturer. The stock snapped a two-day losing streak in the process.Tata Motors’ CFO assured analysts that Jaguar Land Rover (JLR) will meet its fourth quarter EBIT margin guidance of 10% will also turn net debt free by the end of the financial year.
The CFO also said that the US market continues to do well, while Tata Motors is outperforming in China through JLR.
These were some of the other key highlights from the CFO commentary:

• Demand in the European Union is less challenging than expected and UK as a market is also improving.
• Premiumisation of JLR and Commercial Vehicles business in India is progressing well, although the Passenger Vehicle needs an improvement.
• Improvement of margins in the domestic CV business remains on targeted lines.
• Focus will be to arrest the market share in the small CV segment.

Brokerage firm Nomura estimates volume growth for financial year 2025, 2026 and 2027 to be flat, grow at 4% and at 6% year-on-year respectively.Nomura has a “buy” rating on Tata Motors with a price target of ₹861. The stock is trading at 4.7 times financial year 2027 Enterprise Value to EBITDA.

Macquarie has an “outperform” rating on the stock with a price target of ₹826 per share.

CLSA, which recently added Tata Motors to a “high-conviction outperform” list, has a target of ₹930, after the recent correction.

Shares of Tata Motors are among the top gainers on the Nifty 50 index on Wednesday, having gained 3.5% to ₹669.5. The stock is now up 10% from its 52-week low of ₹606.