Shares of Tata Motors Passenger Vehicles (PV) will be in focus on Thursday, June 18 as brokerages remained primarily remained cautious over the automaker's latest outlook and investor day commentary.
On Wednesday, Tata Motors PV shared FY27 outlook, resulting in a sharp sell-off in the Indian stock market, with shares tumbling nearly 10%.
Tata Motors PV owned Jaguar Land Rover said it expects revenue to surge 13% in fiscal year 2027. The company, however guided for an EBIT margin of 4%, a level that disappointed investors amid rising cost pressures and global uncertainties.
The luxury carmaker that contributes 80% to consolidated revenue to the parent company also estimated its operating cash flow to merely break even in fiscal year 2027 after reporting negative operating cash flow of GBP 2.3 billion in fiscal year 2026. Meanwhile, JLR reiterated its goal to achieve double-digit revenue growth over the medium term while boosting expansion in North America, its largest market. The company also plans to launch five news models in the next two years.
ALSO READ: Tata Motors PV-Owned Jaguar Land Rover To Launch Five Products
Here's What Brokerages Are Saying -
Citi maintained 'Sell' call on Tata Motors' PV stock, citing cautious FY27 outlook, highlighting the automaker's plan to expand operations in North America. The brokerage cut target price to Rs 320 from its last closing price of Rs 360.95, nearly 11% downside. CLSA reiterated 'Outperform' coverage and cut target price to 452 from its previous target. The latest price marks an upside of 25% from the stock's last closing price. CLSA expects that the commodity price normalisation in JLR will lift its guidance, while highlighting commodity inflation.
BofA maintained 'Underperform' on the stock at a target price of Rs 335, around 7% downside. Calling the new launches promising, guidance remains underwhelming. Morgan Stanley maintained 'Equal-weight' on Tata Motors PV stock at a target price of Rs 367, marking 1.6% upside. The brokerage said, FY27guidance is better than feared as revenue forecast remains higher than estimate but margins slightly lower. Highlighting subdued FY27 guidance and multiple headwinds, Jefferies reiterated 'Underperform' at a target price of Rs 300, around 16.8% downside.
Citi on Tata Motors PV
- Maintain Sell; cut target price to Rs 320 from Rs 330
- FY27 guidance appears cautious
- Pivot to the North America market
- Five new models are expected over the next 18 months
BofA on Tata Motors PV
- Maintain Underperform with target price of Rs 335.
- Guide underwhelms but North America pivot, new launches promising.
- EV launches coming but flexible powertrains remain core.
Morgan Stanley on Tata Motors PV
- Maintain Equal-weight with target price of Rs 367.
- JLR had a tough FY26 and BMW's recent 2026 guidance cut shows that the environment remains challenging.
- FY27 EBIT guidance is broadly in line.
- Company will focus on key four brands, cost-cutting, EV launches and an expanding presence in the North American market.
- FY27 guidance better than feared – Revenues a touch higher than our estimate but margins slightly lower.
Jefferies on Tata Motors PV
- Maintain Underperform with target price of Rs 300.
- JLR provided subdued guidance for FY27.
- See multiple headwinds, such as increased competition, high discounts & warranty cost, and elevated CWIP (capital work & product-dev in progress).
- Its key models are starting to age.
CLSA on Tata Motors PV
- Maintain Outperform; cut target price to Rs 452 from Rs 468.
- Scope for betterment in guidance lies with commodity price cuts.
- Believe with commodity price normalisation JLR will lift its guidance.
- Deviation in JLR's guidance was largely driven by the nil FCF outlook on the back of the potential margin impact driven by recent commodity inflation.
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