Tata Motors Ltd. (CV) seems to be weathering the Tata-group management storm quite well ahead of its first quarter results for financial year 2027 on Wednesday.
The shares of the company jumped 1.54% to Rs 457 despite news of Tata Sons' Chairman N Chandrasekaran stepping away from re-appoitment, unlike its passenger vehicle cousin, TMPV which tumbled 4% after the announcement.
TMCV is a top pick for Bank of America in the 4W space as it sees the auto giant in a better position to absorb and pass on commodity shock with better pricing over the months.
TMCV is highlighted as a preferred stock in the 4W space by BofA as commercial vehicle (CV) cycle fears recede and demand demonstrates resilience. The brokerage maintained a 'buy' rating on the stock with a price target of Rs 515.
UBS Securities also maintains a 'buy' call on the shares and expects pricing power, strong demand, and lean inventories to help the company navigate elevated commodity costs.
Nomura, while maintaining a 'neutral' rating on Tata Motors, also expects it to beat consensus estimates for the quarter under review.
Brokerages have flagged that near-term margin pressure may persist because West-Asia conflict induced commodity cost hikes, resilient demand and eventual margin normalisation makes the CV story constructive.
The shares pared some gains to trade 0.6% higher at Rs 453 apiece on the NSE, as of 1:51 p.m.
In comparison, other Tata stocks under N Chandra faltered after his decision, with TMPV down by 3.3% to Rs 336 as of 2 p.m. IST.
N Chandra Steps Down As Tata Sons Chairman
Tata Sons chairman Natarajan Chandrasekaran has stepped down from his position. This comes ahead of the group's AGM on August 18, 2026.
N Chandra's tenure ends in February 2027, and he will not be seeking re-appointment.
In July 2025, Tata Sons set two conditions for extending Chandrasekaran's tenure: the holding company must continue to remain unlisted, while a resolution must be reached on the SP Group's stake, which needs to unlock liquidity.
Tata Sons is the principal investment holding company of the Tata Group; 66% of which are held by Tata Trusts. Tata Trusts' conglomerate controls more than 30 companies, including Air India, Tata Motors, and Tata Consultancy Services.
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