Shares of Tata Motors (TAMO.NS) rose 3.3% to ₹669.20 on Wednesday, making it the top performer on the Nifty 50 index. The stock gained as investors reacted positively to Jaguar Land Rover (JLR) reaffirming its financial targets.
Also Read: Tata Capital IPO Valuation Sparks 2.39% Surge in Tata Investment Corp Shares: Here’s Why
JLR’s Strong Outlook Boosts Confidence
The rise in Tata Motors’ stock comes after JLR confirmed its financial targets for the fourth quarter and the full year. The luxury car division maintained its expected profit margin of 10%, showing strong business performance. Since JLR plays a key role in Tata Motors’ overall earnings, this update increased investor confidence.
Mixed Views from Brokerage Firms
Financial analysts have shared different opinions on Tata Motors’ future:
- Nomura and Emkay Global kept their “buy” ratings, setting price targets at ₹861 and ₹950, respectively.
- Motilal Oswal remains cautious, giving a “neutral” rating with a target of ₹705.
While Tata Motors faces some short-term challenges, experts believe its electric vehicle (EV) business has strong long-term potential.
New SUV and EV Strategy Fuel Growth
In an investor call on Tuesday, Tata Motors announced plans to re-launch the ‘Curvv’ SUV during the upcoming IPL cricket tournament. The company also stressed that its growing electric vehicle portfolio will drive future success. As the demand for eco-friendly vehicles increases, Tata Motors is working to strengthen its EV market position in India.
Stock Struggles and Future Challenges
Even though Tata Motors saw a recent price jump, the stock has struggled in the past year. Rising competition, slowing sales, and lower earnings led to a 43% decline from its all-time high in July 2024. According to data from LSEG, Tata Motors is the worst-performing auto stock in the last 52 weeks, dropping around 37%.
Read More: Tata Motors’ Tesla Rival Avinya Electric SUV May Be Priced Around Rs 25 Lakh: Sources
Despite these challenges, Tata Motors’ focus on EVs and brand revival could help the company recover. Investors will be closely watching the company’s performance in the coming months to see if it can bounce back.
