Tata Motors Share Price: The automobile giant of Tata Group has continued on its bearish momentum for the third consecutive day this week. On February 20th, the heavyweight large-cap touched an intraday low of Rs 675.30 apiece, which leads to just Rs 8.3 away from its 52-week lows. Tata Motors share price has been under Rs 700 mark since February 10th. Despite the bearish tone, brokerage CLSA is the latest to upgrade its stance on Tata Motors.
CLSA On Tata Motors:
This global brokerage upgraded its rating to 'High Conviction Outperform' on Tata Motors. However, the brokerage kept its target price unchanged at Rs930 apiece. CLSA believes that Tata Motors' adverse near-term outlook signals scope for favourable valuation.
Tata Motors' share price has been under pressure since late 2024, falling by 26.4% in a year. In the past six months, the stock has plunged by over 37%. As per CLSA, the downfall is due to the weak demand outlook of its luxury brand JLR across key markets coupled with a slowdown in demand for commercial and passenger vehicles for FY26.
Additionally, the concern of import tariffs that is being implemented in US and Europe is impacting JLR's sales in the United States of America --- adding further fuel to the bearish sentiment in Tata Motors.
CLSA also pointed out that JLR is currently performing at 1.2 times its FY27CL EV/EBITDA, which is half of its normative multiple of 2.5 times.
But CLSA also believes that JLR's implied per share value comes to around Rs320 compared to its target price of Rs 450, which should be enough to offer a cushion against US tariff hikes and weaker-than-expected demand and margin.
That being said, CLSA believes a cyclical revival from FY27 which will begin getting priced in the next upcoming quarters.
Notably, as per the Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. The average 1-year target price of Tata Motors is Rs 949.73 apiece, signalling nearly 39% potential upside ahead.
Tata Motors Share Price:
At the time of writing, Tata Motors' share price traded marginally up to Rs 682.60 apiece, on BSE, with a market cap of Rs 2,51,277.98 crore. The stock touched an intraday low of Rs 675.30 apiece, which is Rs 8.3 away from hitting a 52-week low of Rs 667.00. The stock was also a couple of rupees away from its lower circuit of Rs 612.80 apiece.
Tata Motors share price nosedived by nearly 43% from its 52-week high of Rs 1,179.05 apiece against February 20th intraday low. As of February 20, the stock's price-to-equity ratio is at 40.58x and 20.24%.
Tata Motors Split:
Tata Motors is going to split into 1:1 ratio soon. The company's demerger will be of two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity. As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio to 1:1.
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