At its Investor Day, Tata Motors CV said it expects margins to remain in the teens during industry upcycles, while investments are projected at 2-4% of revenue.
The company also reiterated that most regulatory approvals for the Iveco acquisition are already in place, with the transaction expected to be completed by the second quarter. Tata Motors said the deal presents an opportunity to become the world’s fourth-largest commercial vehicle player.
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CLSA maintained its ‘outperform’ rating on the stock with a target price of ₹527 per share, citing upcoming product launches as a potential driver of market share gains.
CLSA’s target price implies a more than 50% upside to the stock from its current trading levels.
HSBC retained its ‘buy’ recommendation and a target price of ₹490, stating that near-term demand remains robust and Tata Motors continues to hold a strong competitive position in the medium and heavy commercial vehicle (M&HCV) segment. The brokerage also said the underperformance in the light commercial vehicle (LCV) business may have bottomed out.
Nomura maintained a ‘neutral’ rating with a target price of ₹402 per share. The brokerage said market share gains, margin discipline and non-cyclical growth remain key priorities for the company.
Shares of Tata Motors were trading at ₹351.05 on Tuesday, down about 1% from Monday’s closing price of ₹354.55. The stock has fallen 14% over the last year.
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