JPMorgan has also cut Tata Motors’ price target to ₹740 from ₹1,250 earlier. The revised price target is nearly at the same price at which the stock closed on Thursday, which is at ₹710.
The brokerage highlighted tariff risks, an ageing portfolio in its unit Jaguar Land Rover (JLR), along with muted industry growth and market share challenges in India for both commercial and passenger vehicles as new headwinds that have emerged for Tata Mtors.
Tata Motors is likely to turn into a net debt company yet again in financial year 2026 as it could turn out to be a ‘tough year’ for the company, JPMorgan’s note said.
JPMorgan wrote that improvement for Tata Motors is only likely in financial year 2027 and 2028 as the balance sheet of the automaker will see a repair backed by a gradual pass-through of tariffs and Electric Vehicle launches in JLR, along with a cyclical recovery in India’s Commercial Vehicle market.
Stabilisation of Tata Motors’ market share and passenger vehicle margins improving in India will also contribute to the repair in Tata Motors’ balance sheet, the brokerage said.
Investors of Tata Motors will be watching out for management’s guidance across all of these businesses during the upcoming investor days, which will be on June 9 for India and on June 16 for JLR.
Out of the 35 analysts that have coverage on Tata Motors, 18 of them have a “buy” rating, 11 say “hold”, while six have a “sell” rating on the stock.
Shares of Tata Motors ended little changed on Thursday at ₹710. The stock has recovered from its 52-week low of ₹535.
