Tata Group giants Tata Steel and Tata Motors, long-time favourites among retail investors, recently released their March quarter earnings. The results prompted a flurry of activity from analysts, with several revising their target prices for both stocks.
Tata Motors: Mixed Views, Attractive Valuations
Tata Motors reported margin performance that aligned well with market expectations. Emkay Global noted that the company is well-positioned to weather near-term risks and maintained a ‘Buy’ rating with a target price of ₹800. JM Financial echoed similar optimism, setting a slightly higher target of ₹810, although it cautioned that global uncertainties and potential tariffs might dampen the outlook.
Nuvama, however, adopted a more cautious stance. While acknowledging the company’s challenges, such as the discontinuation of Jaguar models, loss of market share in China, and potential US tariffs, it retained a ‘REDUCE’ rating and revised its sum-of-the-parts (SOTP) based target price to ₹670 from ₹720. Nuvama also flagged a muted 2% CAGR for the company’s commercial vehicle division in India due to high base effects, increased competition from railways, and modest utilisation levels.
YES Securities, on the other hand, advised investors to await better entry opportunities, preferring other OEMs like Mahindra & Mahindra, Hyundai Motors, TVS Motor, and Eicher Motors over Tata Motors, despite the recent correction in the stock.
Tata Steel: Indian Operations Drive Growth
Tata Steel’s performance for the quarter met market expectations, with a notable boost from its Indian operations and a reduction in losses from its European business. Emkay Global reaffirmed its ‘Buy’ rating and set a target price of ₹185. JM Financial was slightly more conservative, setting a target of ₹180.
Nuvama offered a more detailed outlook, projecting a 3% CAGR for both revenue and EBITDA over FY25–27. It forecast a sequential rise of ₹2,000 per ton in EBITDA for Q1FY26, driven by improved pricing and reduced coal costs. While European operations are expected to turn EBITDA-positive from Q1FY26, softer volumes could temper the gains. Nuvama upgraded the stock to ‘BUY’ and raised its FY27 EBITDA estimate by 6%, setting a revised SOTP-based target price of ₹177, up from ₹164.
YES Securities took a more cautious view on Tata Steel, lowering its target price from ₹168 to ₹162 per share, based on its updated SOTP valuation.
As of March 31, Tata Motors was held by 66.02 lakh small retail investors (with holdings up to ₹2 lakh), while Tata Steel was owned by 59.45 lakh such investors, reaffirming the retail sector’s strong interest in these two Tata stalwarts.
