Tata Motors share price rises over 3% following CFO's reassuring remarks

Tata Motors share price rose by more than 3% during Wednesday's trading session following an analyst meeting held by the company's CFO on Tuesday, where he provided reassuring comments about the future for both the passenger and commercial vehicle maker.

Based on reports, Tata Motors' CFO has reassured analysts that Jaguar Land Rover (JLR) is on track to achieve its fourth quarter EBIT margin target of 8.5% and aims to become net debt free by the end of the financial year. The CFO also noted that the US market is performing well, while Tata Motors is excelling in China through JLR.

Demand within the European Union is proving to be less difficult than anticipated, and the UK market is also showing signs of improvement. The premiumisation efforts for JLR and the Commercial Vehicles business in India are progressing effectively, though enhancements are needed for the Passenger Vehicle segment. The goal will be to maintain market share in the small CV segment.

Tata Motors share price today

Tata Motors share price today opened at an intraday low of ₹652.40 apiece on the BSE, the stock touched an intraday high of ₹671.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities explained that Tata Motors share price is pulling back to the previously broken support of 665, now acting as resistance, aligning with the falling 20-day EMA at 667. A sustained move above 667 could trigger a rally toward the 50-day moving average at 700. On the downside, 635 remains a key support, with a break below turning the trend bearish for 589. For now, the bias remains bullish, with a potential move toward 700 in the near term.

Here's what brokerage's say

Motilal Oswal Financial Services

The brokerage maintains a cautious position concerning this company, due to uncertainties surrounding the potential impact of US tariff charges, weak global economic conditions, and the scaling up of margin-reducing electric vehicle operations. Without any significant drivers, the brokerage reaffirms its Neutral rating with a target price set at ₹705.

ICICI Securities

ICICI Securities mentioned that it participated in the analyst meeting for Tata Motors. In terms of its JLR business, the US. market continues to perform well, along with signs of recovery in the EU market. Tata Motors has retained its EBIT margin guidance of 10% for Q4FY25.

For its passenger vehicle segment in India, the company is launching several new models across various powertrains, including the Sierra and Harrier, while also repositioning the Curvv and Altroz. In the commercial vehicle segment in India, Tata Motors is dedicated to revamping its SCV operations by addressing key concerns. Following a recent decline in stock price, we have upgraded Tata Motors to a BUY recommendation (from Add) while keeping the SoTP-based target price at ₹831, which corresponds to 11x/2.4x FY27E India/JLR EV/EBITDA.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.