The stock was among the top losers on the Nifty 50 index on Tuesday, after its UK unit Jaguar Land Rover, issued a subdued guidance for the current financial year.
As per the deal contours, the UK auto export will see US tariffs cut to 10% from 27.5% starting the end of this month, on an annual quota of 1,00,000 vehicles. The list of other products that can enter the US from the UK, without the 25% tariff, will be determined later.
Before the auto tariff imposition, the standard US import duty on passenger vehicles was 2.5%, which means, although the new tariff rate will be lower than the reciprocal tariffs, they will be higher than the earlier standard rate.
Tata Motors had exported 1.02 lakh vehicles to the US from the UK in 2024.
Brokerage firm CLSA has an outperform rating on Tata Motors with a price target of ₹805. It expects profitability for JLR to improve from financial year 2027, driven by better scale and cost-saving initiatives.
On the flip side, Jefferies has an underperform rating on Tata Motors with a price target of ₹600. The brokerage has cut its financial year 2026 to 2028 Earnings per Share (EPS) estimates by 12% to 19%.
Morgan Stanley remains Equalweight on the stock with a price target of ₹715.
Out of the 35 analysts that have coverage on Tata Motors, 17 of them have a “buy” rating, 12 say “hold”, while the other six have a “sell” recommendation on the stock.
Shares of Tata Motors ended 3.8% lower on Monday at ₹685. The stock was among the top Nifty 50 losers on Monday.
