The stock market is experiencing heightened volatility, with negative sentiment weighing down indices. The Nifty has slipped 5% YTD, and the past three months have been even more turbulent. In such uncertain times, investors are caught in a dilemma—should they invest or stay on the sidelines? To help you navigate this market chaos, Business Today TV presents ‘TOP STOCKS’—a special series where anchor Shailendra Bhatnagar deep-dives into stocks that remain strong despite market fluctuations. Backed by solid fundamentals, this show provides key insights for those looking to make informed investment decisions. In this series, you’ll get to know about company performance, including recent earnings, growth trends, and financial health; key data and ratios like valuations, debt levels, and profitability metrics; business model analysis, focusing on strengths, risks, and future potential; and sector outlook, examining how macroeconomic factors impact these stocks.
In this episode, we analyze Tata Motors (TTMT), the parent company of Jaguar Land Rover (JLR). The stock has been through a volatile phase recently, but CLSA’s recent upgrade suggests a favorable investment opportunity. CLSA has upgraded Tata Motors to High Conviction Outperform from Outperform, citing several important factors. Tata Motors' stock has corrected by ~40% in the last six months due to weak demand for JLR in key markets, along with the risk of import tariffs in the US. JLR is currently trading at 1.2x FY27CL EV/EBITDA, well below its historical multiple of 2.5x, presenting an attractive entry point for investors. Despite challenges, JLR’s implied value at the current stock price is ~Rs 200/share, while CLSA's target valuation stands at Rs 450/share, providing a significant margin of safety. Tata Motors' medium-term outlook includes a 5% decline in goods M&HCVs in FY26, aligning with industry expectations. However, a cyclical revival is expected from FY27, making it an interesting stock to watch. CLSA maintains a target price of Rs 930 for Tata Motors, with a 10x/2.5x FY27CL EV/EBITDA and DCF-based target price for its India PV business.
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Disclaimer: This video is for informational purposes only and does not constitute financial advice or stock recommendations. Please consult your financial advisor before making any investment decisions.