Shares To Buy: Jefferies Gives 'Buy' Call On Tata Motors For Upto 48% Upside On Strong EV Focus

Jefferies is bullish on the stock of Tata Motors and likes its Electric Vehicles Strategy. Even though India is in nascent stage of its adoption, Tata Motors has taken a lead and Evs now account for around 7% of the company's India PV sales volume CYTD.

Shares To Buy: Jefferies Gives 'Buy' Call On Tata Motors For Upto 48% Upside On Strong EV Focus

Jefferies' mentioned that the company's ACE EV is the first product running on a novel electric powertrain i.e. its top selling small CV. This EV primarily developed for intra-city usage has been developed in coordination with potential users. Further, the product at first has garnered strong response with Memorandum of Understanding in respect of 39,000 vehicles from top logistics and e-commerce entities.

"The launch of electric ACE further underlines Tata's strong focus on the EV space, extending the technology to small commercial vehicles. We continue to like Tata's EV strategy, which we believe should drive market share gains for the company as EV adoption rises in the country," the note stated.

Buy Tata Motors For Rs. 605 target price

Jefferies has given a 'Buy' call on the stock of Tata Motors with target price of Rs. 540, with further upside price target of Rs. 605 that implies potential gains of 48% from current price level of Rs. 408.55 per share on the NSE. In case of a downside scenario, the company has given a target of Rs. 325.

Vision to expand EV portfolio and recent TPG investment shall drive the company's EV strategy going ahead

By Fy26, the company plans to augment its PV electric vehicle portfolio from currently 2 to 10 and the latest TPG investment shall provide the financial backing to the company to take its EV plans ahead.

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