Tata Motors PV shares: Tata’s feature-loaded SUV Sierra launched; Nomura sets target price
Bookings for the model will commence from December 16 and deliveries from January 15, 2026. On Wednesday, the Tata Motors stock rose 2.93 per cent to hit a high of Rs 362.80 apiece on BSE.
- Nov 26, 2025,
- Updated Nov 26, 2025 11:17 AM IST
Shares of Tata Motors Passenger Vehicles Ltd (Tata Motors PV) climbed in Wednesday's trade after the launch of Sierra SUV on November 25 at an introductory price of Rs 11.49 lakh. If one goes by Nomura India, the addition of the Sierra to the portfolio could create a meaningful upside to passenger vehicle (PV) growth expectations over FY26-28.
Bookings for the model will commence from December 16 and deliveries from January 15, 2026. Following the developmnt, the Tata Motors stock rose 2.93 per cent to hit a high of Rs 362.80 apiece on BSE.
The Sierra will come in three powertrain options – 1.5-liter Kryojet diesel and two new petrol powertrains, a 1.5-liter TGDi Hyperion, and a naturally aspirated 1.5-liter Revotron engine. It will be offered in seven trims. With 622 liters of storage, Sierra offers one of the highest boot capacities in the segment.
"The car carries forward the Sierra design into a modern avatar. It comes loaded with features and delivers a premium in-cabin experience. The pricing is aggressive, given the base variants are also feature loaded. We expect the Sierra’s potential sales to be at 10,000 per month. News reports indicate 12,000-15,000 per month production plan. With consumers increasingly upgrading to premium models, supported by GST cuts, the Sierra seems well positioned to benefit from this shift," Nomura said.
Nomura is estimating volumes of 6,09,000 units, 6,82,000 units and 7,23,000 units over FY26, FY27 and FY28, respectively. This would translate into monthly volumes of 50,000-60,000 units over the period.
"We value the PV business at 1.5x FY28F EV/sales, and JLR at 1.1 times FY28F EV/Ebitda; we discount the valuation to Dec-27F; and value investments at Rs 87 per share to arrive at our SOTP-based target price of Rs 395. We maintain our Neutral rating on the stock. The stock is currently trading at 4.2 times FY28F EV/Ebitda," Nomura said.
Nomura's target suggests 8.87 per cent potential upside over the prevailing Tata Motors' stock price. The stock was recently in news as InterGlobe Aviation, the operator of the country's largest airline IndiGo, would replace it in Sensex from December 22.
Shares of Tata Motors Passenger Vehicles Ltd (Tata Motors PV) climbed in Wednesday's trade after the launch of Sierra SUV on November 25 at an introductory price of Rs 11.49 lakh. If one goes by Nomura India, the addition of the Sierra to the portfolio could create a meaningful upside to passenger vehicle (PV) growth expectations over FY26-28.
Bookings for the model will commence from December 16 and deliveries from January 15, 2026. Following the developmnt, the Tata Motors stock rose 2.93 per cent to hit a high of Rs 362.80 apiece on BSE.
The Sierra will come in three powertrain options – 1.5-liter Kryojet diesel and two new petrol powertrains, a 1.5-liter TGDi Hyperion, and a naturally aspirated 1.5-liter Revotron engine. It will be offered in seven trims. With 622 liters of storage, Sierra offers one of the highest boot capacities in the segment.
"The car carries forward the Sierra design into a modern avatar. It comes loaded with features and delivers a premium in-cabin experience. The pricing is aggressive, given the base variants are also feature loaded. We expect the Sierra’s potential sales to be at 10,000 per month. News reports indicate 12,000-15,000 per month production plan. With consumers increasingly upgrading to premium models, supported by GST cuts, the Sierra seems well positioned to benefit from this shift," Nomura said.
Nomura is estimating volumes of 6,09,000 units, 6,82,000 units and 7,23,000 units over FY26, FY27 and FY28, respectively. This would translate into monthly volumes of 50,000-60,000 units over the period.
"We value the PV business at 1.5x FY28F EV/sales, and JLR at 1.1 times FY28F EV/Ebitda; we discount the valuation to Dec-27F; and value investments at Rs 87 per share to arrive at our SOTP-based target price of Rs 395. We maintain our Neutral rating on the stock. The stock is currently trading at 4.2 times FY28F EV/Ebitda," Nomura said.
Nomura's target suggests 8.87 per cent potential upside over the prevailing Tata Motors' stock price. The stock was recently in news as InterGlobe Aviation, the operator of the country's largest airline IndiGo, would replace it in Sensex from December 22.