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On Tuesday, JPMorgan reiterated its Neutral rating on Tata Motors Ltd (NSE:TAMO). (TTMT:IN) with a consistent price target of INR740.00. The firm’s analysis followed Tata Motors (NYSE:TTM)’ India Investor Day, where the automotive company provided insights into its industry outlook and growth expectations for its various business segments.
Tata Motors has set a goal to capture a 40% market share across all commercial vehicle (CV) segments, up from the projected 37% in the fiscal year 2025. The company also aims for a double-digit EBITDA percentage and robust free cash flow (FCF) in this division. For passenger vehicles (PVs), Tata Motors anticipates growing faster than the overall market, targeting a 16% market share by the fiscal year 2027, up from 13% in 2025, and reaching 18-20% by 2030. The PV internal combustion engine (ICE) segment is expected to achieve double-digit EBITDA percentages and ₹10 billion FCF. However, the electric vehicle (EV) segment of PVs is projected to reach positive EBITDA but will likely experience negative FCF in the medium term.
JPMorgan noted that most of these projections align with their expectations set for the Investor Day, though the anticipated margin in the CV segment was higher than anticipated. The firm emphasized that the delivery of the PV business would be critically observed, especially since 2025 was a challenging year for that sector. Additionally, JPMorgan is looking forward to the developments and guidance that will emerge from the upcoming Jaguar Land Rover (JLR) Investor Day in the United Kingdom (TADAWUL:4280), scheduled for June 16.
The reaffirmed Neutral stance reflects JPMorgan’s watchful approach as they continue to monitor Tata Motors’ performance and strategic execution in the coming years.
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