CLSA upgrades Tata Motors to high-conviction outperform, sets Rs 930 target price

Global brokerage firm CLSA has upgraded Tata Motors stock to a 'High-Conviction Outperform' from its previous rating of 'Outperform,' with a target price of Rs 930, suggesting that the adverse near-term outlook for the company provides an opportunity to enter the stock at a favorable valuation.

The target price set by the foreign brokerage firm signals a substantial 36.4% upside potential in the stock from Monday’s closing price on the BSE.

According to CLSA, Jaguar Land Rover (JLR) is currently trading at 1.2x FY27CL EV/EBITDA, significantly below its normative multiple of 2.5x. The brokerage's sum-of-the-parts valuation implies a per-share value of approximately Rs 320 for JLR at the current price, compared to a target valuation of Rs 450 per share.


CLSA notes that this difference offers a sufficient buffer against potential impacts from the US tariff hike and weaker-than-expected demand and margin.

The brokerage also anticipates a cyclical revival in the medium and heavy commercial vehicle segment from FY27 onwards, following a period of subdued performance. CLSA believes that this upcoming revival will begin to be reflected in the stock's price over the coming quarters.

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Tata Motors share price history

Over the past year, the Tata Motors shares have declined by 26.61%, while the six-month performance shows a 37.09% decrease. In the last three months, the price has dropped by 12.64%, and the year-to-date (YTD) decline stands at 8.66%.

Around 10 am, the shares of Tata Motors were trading 0.5% higher at Rs 685 on the BSE.

Tata Motors technical performance

On charts, the shares of Tata Motors are trading below all their significant short, medium as well as long-term exponential moving averages and oscillating near the 39 mark on the relative strength indicator (RSI).

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