The CFO said that they’ll obtain FY25 EBIT margin steering of no less than 8.5%, nonetheless, famous that FY26 JLR quantity efficiency could also be harassed as a result of discontinuation of the Jaguar fashions.
Moreover, it was highlighted that potential US tariffs on Europe might require JLR to offset the influence by worth hikes and value financial savings.
In the meantime, India’s passenger automobile (PV) quantity development in FY26 is predicted to be fueled by the repositioning of the Curvv mannequin and the launch of the Harrier EV and Sierra mannequin.
After this growth, here’s what analysts at varied brokerage corporations say:
Motilal Oswal: Impartial| Goal worth: Rs 705
The corporate goals to prioritize worthwhile quantity development over market share growth whereas sustaining its FY25 steering, in distinction to different OEMs issuing revenue warnings. Within the Indian CV section, the main target might be on regaining misplaced share in SCVs, whereas within the Indian PV section, efforts might be directed in the direction of new launches and enhancing service capabilities. Nevertheless, issues stay as a consequence of potential US tariffs, weak world macro circumstances, and the influence of margin-dilutive EV growth, resulting in a cautious outlook on the corporate’s efficiency.
Nuvama: Cut back| Goal worth: Rs 720
Nuvama has maintained a Cut back ranking on Tata Motors with a goal worth of Rs 720. The corporate stays on observe to attain its FY25 EBIT margin steering of no less than 8.5% and switch web money constructive. Nevertheless, issues persist concerning FY26 JLR quantity efficiency, which can be impacted by the discontinuation of Jaguar fashions and a subdued China outlook, though Land Rover’s efficiency is predicted to outpace the business. Moreover, potential US tariffs on Europe may drive JLR to offset the influence by worth hikes and value financial savings. Within the Indian PV section, quantity development in FY26 is predicted to be pushed by the repositioning of the Curvv mannequin and the launch of the Harrier EV and Sierra mannequin.
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Elara Securities: Purchase| Goal worth: Rs 872
Elara has maintained a Purchase ranking on Tata Motors however has lower the goal worth to Rs 872 from Rs 909.
The agency is carefully monitoring Jaguar Land Rover’s (JLR) technique, balancing premiumization and quantity development, amid a slowing world demand atmosphere. Moreover, issues stay over order backlog exhaustion, which may influence future efficiency. Elara has additionally lowered EV/EBITDA multiples for Business Automobiles (CV) and Passenger Automobiles (PV) segments to 10x/13x from 11x/14x, citing a muted outlook for the corporate.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)
