JM Financial maintains Buy on Tata Motors; raises target price to Rs 815

JM Financial has maintained a buy call on Tata Motors with a target price of Rs 815. The current market price of Tata Motors is Rs 733.75. The time period given by analyst is year when Tata Motors price can reach defined target. Tata Motors , incorporated in 1945, is a Large Cap company with a market cap of Rs 261420.64 crore, operating in the Auto sector.

Tata Motors’ key products/revenue segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Sale of services and Other Operating Revenue for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 12,1012 crore, up 4.89 % from last quarter Total Income of Rs 115365.00 crore and down -.36 % from last year same quarter Total Income of Rs 121446.15 crore. Company has reported net profit after tax of Rs 8442.00 Crore in latest quarter.

The company’s top management includes Mr.N Chandrasekaran, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Bharat Puri, Mr.N Chandrasekaran, Mr.Girish Wagh, Ms.Hanne Sorensen, Ms.Vedika Bhandarkar, Mr.Kosaraju V Chowdary, Mr.Al-Noor Ramji, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Al-Noor Ramji, Mr.Kosaraju V Chowdary, Ms.Vedika Bhandarkar, Mr.Girish Wagh, Ms.Hanne Sorensen, Ms.Vedika Bhandarkar, Mr.Kosaraju V Chowdary, Mr.Al-Noor Ramji, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Bharat Puri, Mr.N Chandrasekaran, Mr.Girish Wagh, Ms.Hanne Sorensen, Mr.Bharat Puri. Company has BSR & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 368 crore shares outstanding.

Investment Rationale
Tata Motors targets a 280bps market share gain in the PV segment by FY27, led by new launches. In respect of the CV business, the industry is expected to grow at a 3?5% CAGR over FY25-30E. Further, Tata Motors is focusing on opportunities in CV export markets by strengthening market leadership, expanding its product portfolio and enhancing its distribution network in key markets. The company is targeting EBITDA margins in the teens for its CV business and 10% for its PV-EV business by FY30E. JM Financial maintains BUY with a Mar’27 SOTP of Rs 815 (standalone / JLR valued at 10x / 2x EV/EBITDA). Rising global uncertainty remains a key risk.
Promoter/FII Holdings
Promoters held 42.58 per cent stake in the company as of 31-Mar-2025, while FIIs owned 17.84 per cent, DIIs 16.84 per cent.