Right Time To Buy Tata Motors PV Shares Despite JLR Woes? CLSA Says There's 'Sun Behind The Dark Clouds'

At a time when Tata Motors Passenger Vehicles Ltd. has faced immense pressure owing to the slowdown in JLR volumes in Q3FY26, CLSA believes there is light at the end of the tunnel, or rather, "sun behind the dark clouds" for India's premier automaker.

In its latest note, the brokerage firm has highlighted that despite the ongoing JLR woes surrounding a cyberattack disrupting production and distribution in Q3FY26, there is room for better things ahead.

CLSA believes a scaled revival and control on variable marketing expenditure will drive margins for JLR, which is the dominant contributor to Tata Motors PV's topline.

In the latest Q3 business update, Tata Motors TV confirmed that wholesale numbers for JLR fell as much as 43% while retail sales fell 25%, on a year-on-year basis.

This was largely on account of a cyberattack that halted production and led to significant distribution delays. CLSA noted that ransomware attack, tariffs, and higher VME will impact Tata Motors PV's FY26 free cash flow.

Shares of Tata Motors PV fell almost 4% in trade on Tuesday in the wake of weakness in JLR volumes in Q3, though the stock recovered to close with cuts of just over 1.2%.

But the brokerage firm believes the road ahead could be easier for the JLR division. As for Tata Motors' domestic business, a revival in demand, coupled with new launches, could aid the prospect for the Indian automaker.

Tata Motors has recently launched the iconic Sierra, with the EV variant likely to be launched this year.

Keeping these factors in mind, CLSA has maintained an 'outperform' rating on Tata Motors PV with an unchanged target price of 450. CLSA's target price implies an upside of 22% from Tuesday's closing price.