JPMorgan and Nomura have cut the target price on Tata Motors Commercial Vehicles Ltd. (TMCV) after the company released its third-quarter earnings for the financial year ending March 2026, where profit tumbled as much as 48% due to a series of one-time expenses ranging from new labour codes to demerger costs.
In light of its Q3 earnings, the likes of JPMorgan and Nomura have cut the target price on Tata Motors CV due to a series of headwinds the company incurred in the third quarter. However, all these brokerages offered a relatively positive outlook going ahead.
Kotak Securities, meanwhile, hiked the target price on the counter, believing that there is a healthy near-term demand momentum and robust profitability for domestic commercial vehicles, which was in line with expectations.
This comes on the back of Tata Motors CV's Q3 numbers, where the company reported a consolidated net profit of Rs 705 crore in the December quarter, marking a 48% downturn as compared to Rs 1,355 crore in the year-ago period.
Brokerages On Tata Motors
Kotak Securities on Tata Motors CV
Maintain Add; Hike Target Price to Rs 485 from Rs 450
Healthy near-term demand momentum
Domestic CV's profitability was in line with expectations
CV business momentum to sustain in the near term
JPMorgan on Tata Motors CV
Maintain Overweight; Cut Target Price to Rs 510 from Rs 475
Slight miss in 3Q, but volume momentum drives earnings upgrade
Management expects growth momentum to persist, taking price hikes to offset commodity pressures
Expect a modest India CV recovery after three years of no growth
Nomura on Tata Motors CV
Maintain Buy; Cut Target Price to Rs 547 from Rs 552
CV cycle turning up as fleet utilizations rise
Q3 ASPs miss on adverse mix; price hikes should cover costs
Strong growth outlook
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