Tata Stocks Outlook: The end of the Q1 earnings season, coupled with N Chandrasekaran’s decision to step down as Chairman of Tata Sons, has put Tata Group stocks under the scanner, making them key stocks to watch.
Chandrasekaran’s decision comes after a six-month boardroom deadlock over the extension of his tenure.
Given Tata Sons’ role as the principal holding company and promoter of several Tata Group businesses, any developments concerning the holding company could have a direct bearing on the outlook for Tata stocks.
“Looking through the potential near-term market concerns related to leadership change, we believe business fundamentals will prevail,” American investment bank Jefferies said in a recent report.
Here’s what Jefferies has to say about the outlook for the Tata Group’s stocks:
Indian Hotels (IHCL) Share Price Target
Jefferies maintains a BUY with a Rs 875 price target, implying 21 per cent upside. It sees strong domestic travel demand, asset-light expansion and hotel additions supporting 15 per cent EBITDA CAGR through FY26-29.
Tata Steel Share Price Target
Jefferies maintains BUY with a Rs 240 price target, implying 29 per cent upside. It expects recovery in Indian steel prices and improving Asian spreads to drive earnings, though volume growth could moderate post-FY27.
Tata Consumer Products Share Price Target
Jefferies retains BUY with a Rs 1,450 price target, offering over 30 per cent potential upside. It favours TCPL for limited crude exposure, stable India growth, faster-growing categories and margin expansion.
Voltas Share Price Target
Jefferies maintains BUY with a Rs 1,530 price target. Strong room-air-conditioner volumes, capacity expansion and its leadership position underpin expectations of 15 per cent sales and 21 per cent PAT CAGR during FY27-29.
Titan Share Price Target
Jefferies maintains HOLD with a Rs 5,000 price target. It expects strong jewellery-led growth, premiumisation and adjacencies to drive 16 per cent revenue and 21 per cent EBITDA/PAT CAGR, but rich valuations cap upside.
Trent Share Price Target
Jefferies retains HOLD with a Rs 3,435 price target, implying around 13 per cent upside. Slower growth, subdued demand and intense competition keep it on the sidelines, despite resilient margins and long-term expansion opportunities.
TCS Share Price Target
Jefferies maintains UNDERPERFORM with a Rs 1,800 price target, implying 23 per cent downside. AI-led revenue deflation risks, weak bookings, limited margin expansion and deteriorating cash conversion are expected to pressure growth and valuations.
Tata Motors Passenger Vehicles Share Price Target
Jefferies maintains UNDERPERFORM with a Rs 300 price target, implying 12 per cent downside. JLR faces competition, high discounts, warranty costs and ageing models, while India PV strength is unlikely to offset the JLR drag.
Tata Power Share Price TargetJefferies retains UNDERPERFORM with a Rs 355 price target. It remains cautious over execution delays and Mundra issues despite ambitious FY30 growth targets, with a positive Mundra resolution identified as an upside risk.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
