Tata Motors Loses Preference As JLR Outlook Has UBS Bearish, Citi Suspends Rating

UBS and Citi have shared their outlook on Tata Motors Ltd. stock, with UBS remaining bearish and Citi suspending its rating.

UBS maintained its 'sell' rating on the stock with a price target of Rs 780. The global research house raised red flags on Jaguar Land Rover's medium-term outlook, terming it "overly optimistic" in the context of global premium auto market challenges.

Citi, on the other hand, has suspended its rating on Tata Motors, leaving investors without a directional call for now.

While JLR's all-electric launch plans look ambitious, UBS warns that setbacks experienced by rivals like Volvo and Porsche indicate this could be a risky pivot, especially as some automakers are revisiting investments in ICE and hybrid technologies. Although the Range Rover retains its luxury status, UBS flagged Jaguar's declining brand image, citing a significant uphill task to position itself as a super-premium EV player.

1. Total Commercial Vehicle Sales:

• Reported sales: 27,636 units.

• Estimated sales: 29,367 units.

• YoY comparison: 27,636 units in November 2024, compared to 28,029 units in November 2023.

• Decline: A decline of 1% YoY in CV sales. Sales also fell short of estimates by about 1,731 units.

2. Total Passenger Vehicle Sales:

• Reported sales: 47,117 units.

• Estimated sales: 43,683 units.

• YoY comparison: 47,117 units in November 2024, compared to 46,143 units in November 2023.

• Growth: 2% increase YoY in PV sales; sales exceeded estimates by approximately 3,434 units.

3. Total Domestic Sales:

• Reported sales: 73,246 units.

• YoY comparison: 73,246 units in November 2024, compared to 72,647 units in November 2023.

• Growth: 1% increase YoY in total domestic sales.

Share price of Tata Motors rose as much as 1.31%, the highest level since Nov. 26. It pared gains to trade 0.31% higher at Rs 788.90 apiece, as of 01:03 p.m., compared to a 0.22% advance in the NSE Nifty 50.

The stock has risen 0.53% on a year-to-date basis. The relative strength index was at 37.32.

Out of 36 analysts tracking the company, 21 maintain a 'buy' rating, 10 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 22.5%.