Tata Motors shares are in focus on possible partnership plans with Tesla. The California-based Elon Musk company is gearing up plans to set up its manufacturing plant in Maharashtra. The company is reportedly in touch with Tata Motors for a partnership.
CLSA upgrades Tata Motors
That apart, the other key reason why the share price is in focus is the upgrade from CLSA. The brokerage firm CLSA upgraded Tata Motors to high-conviction Outperform from Outperform. It has a target price of Rs 930. The brokerage house is betting on the near-term adverse outlook, giving a favourable valuation to enter. Following this rating upgrade the share price of Tata Motors shot up 1.3% to a high of Rs 690.95, intraday.
Jaguar and Land Rover are currently trading at an enterprise multiple of 1.2x of FY27 estimates, which is way below its average multiple of 2.5x.
According to the sum of the parts valuation method, JLR’s current share price of Rs 320 is 29% away from the targeted price of Rs 450 per equity share. Also, this gives enough cushion against the impact of the US tariff hike and weaker-than-expected demand and margin.
ALSO READTesla eyes Maharashtra as base, possible partnership with Tata Motors
US President Donald Trump announced levying a 25% tariff on automobile imports. However, he didn’t mention a date to roll out these tariffs.
US President Donald Trump said it would be “very unfair” to America if Tesla opened a manufacturing facility in India. “Every country in the world takes advantage of us, and they do it with tariffs. They make it practically impossible for him [Musk] to sell a car, as an example, in India,” said Trump while giving an interview to Fox News.
ALSO READ‘Every country takes advantage of us’, Trump censures Tesla’s make in India plans Tata Motors’ performance in Q3
For the reporting quarter, the company’s net profit fell 22% YoY to Rs 5,451 crore. However, it was up 63% sequentially from Rs 3,343 crore posted in the second quarter of the current financial year. The revenue from operations increased 3% YoY to Rs 1.13 lakh crore. The EBITDA or the operating profit was Rs 15,500 crore in Q3 FY25.
Tata Motors Vs Nifty 50
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