DINESH

Tata Motors PV

Latest CMP 334
Today's Change ▼ -4.32%
52-Week High / Low 714 | 294
Price Date: 14-Aug-2026
Recommendation Strong Sell
Target Price 454
Expected Upside 16.5%
Forecast Horizon 2 Years
Historical CAGR 5.3%
1,000 Invested 17-Aug-2006
Today's Value 2,795
Investment Period 20 Years

Stock Snapshot

Post Results Return
+1.4%
Neutral Market Reaction
1-Year Target Price
234
2-Year Target Price
454
52-Week High / Low
714 / 294
20-Day Return
-0.6%
Market Cap (Cr.)
123,263
Current PE
44.6
P/BV Ratio
1.1
Dividend Yield
0.7%
Industry PE
29.3

Price Performance

Basis of our Recommendation

Tata Motors Passenger Vehicles (TMPV) is navigating a bifurcated landscape, with strong growth in its domestic market driven by electric vehicle (EV) adoption, while facing significant challenges in its Jaguar Land Rover (JLR) segment. Management's focus on expanding EV offerings and enhancing operational efficiency is crucial for sustaining revenue growth and improving margins. The India business is projected to achieve a 15% CAGR in volumes through FY31, supported by a robust product pipeline and capacity expansion. However, JLR's ongoing supply chain issues and geopolitical uncertainties pose risks to the consolidated outlook. Vista's forecast reflects these dynamics, anticipating stable margins and a premium valuation despite the headwinds. The overall market environment remains supportive, with a projected CAGR of 6.82% for the passenger vehicle sector, although competitive pricing pressures persist. Key opportunities include the successful launch of new EV models and market share gains in India, while watchpoints include JLR's execution risks and commodity cost inflation. The next 12-24 months will be critical for TMPV as it seeks to balance domestic growth with JLR's recovery efforts

👍 Why We Like This Stock

  • Strong domestic growth driven by EV adoption and a robust product pipeline
  • Management's focus on operational efficiency and cost reduction initiatives at JLR
  • Projected 15% CAGR in volumes for the India business through FY31

Things To Watch Out For

  • Significant headwinds in the JLR segment due to supply chain constraints and geopolitical uncertainties
  • Rising input costs and competitive pricing pressures impacting margins
  • Execution risks related to new product launches and market response

Key Parameters

Balance Sheet Strength
Weak Cash Conversion
Market Share
Losing
Industry Outlook
Weakening
Analyst View
Hold
Dividend History
Regular
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 434,016 439,695 335,582 384,486 440,488
Profit Before Tax (Cr.) 29,368 34,330 2,073 -1,839 7,879
PBT Margin 6.8% 7.8% 61.8% -0.5% 1.8%
Net Profit (Cr.) 23,791 32,716 2,519 -1,379 5,311
Earnings Per Share 63.5 87.9 7.5 -3.4 14.4

Analyst Recommendations

Broker Recommendation Target Price Date
BofA ▼ Reduce 335 17-Jun-2026
CLSA ▲ Outperform 452 14-Aug-2026
Citigroup ▼ Sell 305 14-Aug-2026
Deven Choksey ► Add 395 18-May-2026
Emkay Global ► Hold 390 17-Jun-2026
Geojit Financials ▲ Buy 241 01-Apr-2026
Goldman Sachs ► Hold 355 17-Jun-2026
HSBC ► Hold 400 02-Jul-2026
ICICI Securities ► Hold 370 24-Jun-2026
Jeffries ▼ Underperform 300 13-Aug-2026
Kotak Securities ▼ Sell 310 23-Jun-2026
Macguire ▲ Outperform 381 14-Aug-2026
Moneycontrol ► Equalweight 346 14-Aug-2026
Morgan Stanley ► Equalweight 367 14-Aug-2026
Motilal Oswal ▼ Sell 310 14-Aug-2026
Nomura ► Neutral 389 14-Aug-2026
Nuvama ▲ Buy 470 23-Jun-2026
Consensus Recommendation ► Hold
Consensus Target 360
Coverage 17 Analysts
Analysts' Viewpoint
Tata Motors' domestic passenger vehicle segment is a growth driver, supported by robust EV and CNG adoption, market share gains, and aggressive production scaling. However, the JLR segment struggles with supply chain disruptions, geopolitical uncertainties, and rising costs, which pressure margins and increase debt levels. Upcoming product launches and strategic cost-reduction initiatives are expected to drive future growth, though near-term challenges persist. Analysts maintain a cautious outlook due to persistent commodity cost pressures and JLR's execution risks.

Company Overview

Show Company Profile

Tata Motors Passenger Vehicles Limited designs, develops, manufactures, and sells various automotive vehicles. The company offers passenger and electric vehicles, as well as related spare parts and accessories. It also manufactures engines for industrial applications. In addition, the company provides information technology and vehicle financing services. It operates in India, China, the United States, the United Kingdom, rest of Europe, and internationally. The company was formerly known as Tata Motors Limited and changed its name to Tata Motors Passenger Vehicles Limited in October 2025. Tata Motors Passenger Vehicles Limited was incorporated in 1945 and is headquartered in Mumbai, India.