Tata Motors shares rise for sixth session, here are fresh price targets

Shares of Tata Motors rose for the sixth straight session on Wednesday, signalling short-term strength  in the Tata Group stock. The auto stock is also in the green in terms of long term and short term moving averages. Despite the current spurt in the Tata Motors stock, it is down 38% from its all-time high of Rs 735.70. 

In the current session, Tata Motors stock rose nearly 0.5% to Rs 737.45. Market cap of the Tata Group firm climbed to Rs 2.70 lakh crore. The stock has a one-year beta of 1.4, indicating very high volatility during the period

The company has a positve outlook on its business. Tata Motors has projected 40% CV business share by FY27 and expects double-digit EBITDA margin in PVs from 8.1%

Rajesh Palviya, SVP of Technical and Derivatives Research at Axis Securities has a buy call on the auto stock. The stock can be bought for a target price of Rs 780 and with a stop loss of Rs 705. 

"Tata Motors has experienced a trend reversal on the daily and weekly time frame, forming a series of higher tops and bottoms, indicating bullish sentiments. The stock is currently sustaining above its 20, 50 and 100 day SMA's which reconfirms bullish sentiments. The past couple of months' rising volumes signify increased participation. The daily and weekly strength indicator RSI indicates rising strength. Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 770-810, and its downside support zone is the Rs 713-695 levels," said Palviya. 

However, Kotak Institutional Equities has maintained its 'Sell' call on the Tata Motors stock. It has fixed a fair value target of Rs 600. 

The call comes on the back of a comprehensive review of the Jaguar Land Rover (JLR) annual report for FY2025, signaling significant challenges faced by the company's subsidiary. 

The annual report shows JLR's struggle with competitive pressures in key markets and notes a potential impact from tariffs that is not fully accounted for in the company's financial estimates for FY2026-27.

"We believe tariffs can have significant impact on the company’s FY2026-27E financials, which is not completely factored in. In addition, underperformance in the domestic business coupled with muted demand environment remains another area of concern at the current juncture," Kotak said.

The domestic brokerage indicated that the short-term outlook for the JLR business is expected to be difficult, primarily due to declining demand trends in China and the effects of tariffs in the US. Furthermore, the loss of market share in the domestic commercial vehicle (CV) and passenger vehicle (PV) sectors continues to be a significant concern.

Meanwhile, Japanese brokerage Nomura maintains a Neutral rating on the stock with a SOTP-based target price of Rs 799. The stock trades at 4.5 times FY27F EV/EBITDA.

JPMorgan has downgraded the stock from 'overweight' to 'neutral'. It has cited new challenges facing the company's passenger and commercial vehicle segments. The brokerage trimmed its price target for Tata Motors to Rs 740 from Rs 1,250. Tata Motors might become a net debt company again by the financial year 2026, which could prove challenging, said the brokerage. Improvement is expected in 2027 and 2028, driven by tariff adjustments, new electric vehicle launches in JLR, and a recovery in India's commercial vehicle market, it added.