Tata Motors share: Nuvama retains ‘Reduce' with Rs 670 target; sees muted FY26 growth in PV & CV segments
By News Desk Published on June 10, 2025, 08:52 IST
Nuvama Institutional Equities has maintained its 'Reduce' rating on Tata Motors, with a target price of ₹670/share, indicating downside risk from the current market price of ₹717.50.
The brokerage expects single-digit growth across the company's domestic commercial (CV) and passenger vehicle (PV) segments in FY26, citing a high base and competitive landscape. It forecasts CV market share to rise to 40% by FY27 (from 36% in FY25), driven by new launches and a recovery in the small commercial vehicle (SCV) segment. Similarly, PV market share is seen improving to 16% by FY27 from 13% currently, backed by refreshed product lines.
Tata Motors plans to launch seven new PV models by FY30, including the much-anticipated Sierra and Avinya range, along with two new ICE and two new EV offerings.
On the financial side, Nuvama estimates that by FY27: CV business free cash flow (FCF) will be 7–9% of sales
PV (ICE) segment FCF will be around ₹1,000 crore
PV (EV) segment FCF is expected to remain negative
Despite long-term product strategies, Nuvama's cautious stance is due to near-term margin pressures and execution challenges.
Disclaimer: This article is based on brokerage reports and is meant for informational purposes only. Business Upturn does not provide stock advice or investment recommendations.
News desk at BusinessUpturn.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
2 days ago
- Entrepreneur
Tata Motors Assures Stability Amid Global Disruptions
Despite the headwinds, Chandrasekaran expressed cautious optimism. "Given the enormous amount of work we have done over the past years... our businesses are structured to not just handle this environment but to thrive," he concluded You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Tata Motors chairman N Chandrasekaran used the company's 80th annual general meeting (AGM) on Friday to highlight the mounting challenges facing the global auto industry, while reaffirming the company's preparedness in key areas like electric vehicles and supply chain resilience. The meeting, held virtually, began with a solemn minute's silence to honour victims of the Air India flight AI-171 crash, marking Chandrasekaran's first appearance at a Tata Group AGM since the June 12 tragedy. He had skipped earlier AGMs of Tata Consultancy Services and Tata Consumer Products this week. In his address to shareholders, Chandrasekaran painted a candid picture of a volatile global landscape: "Going forward, volatility will continue to mark economic cycles from widespread geopolitical conflicts, military escalations, the redrawing of supply chains and tariff regimes to artificial intelligence and energy transition. Nowhere are all these disruptions visible more than in the automotive sector." A major concern raised was the global shortage of rare earth materials essential for manufacturing permanent magnets used in electric motors. These magnets play a crucial role in electric vehicles (EVs), hybrids, and even some internal combustion engine models. The scarcity has triggered alarm across the industry, with manufacturers warning of production halts if supply is not restored swiftly. However, Tata Motors is not yet facing a disruption. "As of now, we are okay. We are not facing issues. We are able to source the magnets that we need, and we have plans for having the right level of inventory," Chandrasekaran assured, adding that the company is working closely with the government and exploring alternative sourcing strategies. "This is not a concern but this is something that we are watching very carefully," he noted. Despite global headwinds, Tata Motors posted a consolidated group revenue of INR 4.39 lakh crore in FY25, a modest rise of 1.3 per cent. Profit after tax, however, fell 12 per cent to INR 28,149 crore. Wholesale volumes dipped 3 per cent to 1.34 million units. Nevertheless, the company reported record EBITDA and pre-tax earnings (before exceptional items), with Tata Motors now debt-free. The US market posed a fresh challenge for Tata-owned Jaguar Land Rover (JLR), which had to suspend deliveries following steep tariff hikes imposed by the Trump-led administration. "From 2.5 per cent, the tariff would have gone to 27.5 per cent," Chandrasekaran said, but clarified that with a new trade agreement between the UK and US, the rate would settle at 10 per cent. The gross impact could have been £1.6 billion, but JLR's mitigation steps are expected to limit the damage to £600 million. Amid these developments, Tata Motors continues its demerger process. The plan is to list its commercial vehicles (CV) and passenger vehicles (PV) businesses as two independent entities, with the latter including JLR and the company's growing EV portfolio. "We should be able to have two independent listed companies — one with CVs and the other with passenger vehicles and JLR — hopefully before the end of this year," he said. On the PV front, Tata is pushing to reverse its decline in the small commercial vehicle segment while doubling down on EVs. "Our market share is above 50 per cent in the electric PV segment," said Chandrasekaran. EVs now make up 15 per cent of Tata Motors' PV sales, with a 30 per cent target by 2030, "but I think we will achieve the target earlier than that," he added. Despite the headwinds, Chandrasekaran expressed cautious optimism. "Given the enormous amount of work we have done over the past years... our businesses are structured to not just handle this environment but to thrive," he concluded.
Business Upturn
2 days ago
- Business Upturn
Nifty 50 top losers this week (June 21): Tata Motors, Adani Ports, Bajaj Finance, Dr. Reddy's, Adani Enterprises and more
By Aman Shukla Published on June 21, 2025, 09:26 IST Indian stock markets ended the week on a positive note, with benchmark indices posting solid gains. Both the Nifty 50 and Sensex rose over 1.5% for the week, recovering losses from the previous week. Several major stocks underperformed this week, with Tata Motors, Adani Ports and Bajaj Finance leading the losses. Let's take a closer look at the top 10 losers of the Nifty 50 this week, according to Trendlyne. Nifty 50 Top Losers This Week Tata Motors closed at ₹676.2, down 5.0% for the week despite a modest daily gain of 0.6%. Adani Ports and Special Economic Zone ended at ₹1349.3, falling 4.0% over the week. Bajaj Finance settled at ₹905.0, recording a weekly loss of 3.0% . Dr. Reddy's Laboratories closed at ₹1325.3, down 2.7% this week. Adani Enterprises ended the week at ₹2448.4, registering a 2.4% decline. Sun Pharmaceutical Industries slipped 1.3% to finish at ₹1665.1. Bajaj Finserv closed at ₹1986.2, falling 1.2% during the week. Bajaj Auto declined 1.1% , ending the week at ₹8371.0. Nestle India recorded a 0.7% drop to settle at ₹2360.4. Hindustan Unilever closed the week at ₹2306.2, down 0.6%. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Adani enterprisesAdani PortsBajaj FinanceDr Reddy'sNiftyTata Motors Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
CBS News
2 days ago
- CBS News
Placer County steps up efforts to crack down on brake fires on Interstate 80
Placer County is stepping up efforts to prevent roadside fires along the Interstate 80 corridor through the Sierra, as rising temperatures increase the risk of brake fires on big rigs descending from the summit. In response, county officials hosted a webinar Tuesday morning, bringing together the California Trucking Association, Caltrans, Cal Fire, and the California Highway Patrol to discuss prevention measures. All commercial trucks are required to inspect their brakes before making the steep descent, but officials said some drivers continue to skip that crucial step. The renewed focus on prevention comes after more than 60 fires last year were linked to failing brake systems. Ali Khalil, owner and instructor at Easy Truck Driving School in South Sacramento, said pre-trip inspections are just as important as learning to drive the rig. "It doesn't matter if you've been a trucker for a year, six months, or two days, or 15, 20, 30 years," Khalil said. "Because the outcome could be devastating." Officials said it will take a combination of driver education and roadside fuel management to reduce wildfire risk along the corridor. District 5 Supervisor Cindy Gustafson emphasized the importance of working together in a statement, saying, "This effort is about prevention, awareness, and working together to keep our foothill and mountain towns safe." Over the past few months, the county has teamed up with Caltrans to clear dry brush and vegetation along I-80, a key step in reducing the fuel available for potential fires.
