1:2 Split Ratio Ahead: Tata's Auto Stock Gets Neutral Rating, Motilal Oswal Cuts Target Price To Rs 960

Brokerage Motilal Oswal is neutral on Tata Motors share price, and has trimmed its target price to Rs 960 from current levels The brokerage expects JLR margins to remain stable over FY24-26, given: 1) rising cost pressure as it invests in demand generation, 2) normalizing mix, and 3) EV ramp-up, which is likely to be margin-dilutive. Even in India business, both CV and PV businesses are seeing moderation in demand.

Motilal has factored in flat margins for India business over our forecast period.

In its latest research note, Motilal said, "While there is no doubt that TTMT delivered an extremely robust performance across its key segments in FY24, the above-mentioned headwinds could hurt its performance going ahead. The stock trades at 17x/15x FY25E/FY26E consolidated EPS and 6x/5x EV/EBITDA. Reiterate Neutral with our Jun'26E SOTP-based TP of INR960."