Tata group firms such as Tata Motors Ltd, Tata Steel Ltd and Trent Ltd and a few mid and smallcap IT firms such as Coforge, KPIT Technologies Ltd and Cyient Ltd were among the companies that participated on the Day 2 of Nuvama Conference 2025 "India 2025: Reformed, Resilient and Resurgent". In a note, Nuvama jotted down the key highlights and suggested its target prices for the respective stocks.
Tata Motors | Target price: Rs 720 Nuvama hosted Tata Motors' General Manager (Treasury & IR) Sneha Gavankar. Among the key highlights, the Tata Motors' management has cut the FY25 revenue target for JLR while retaining its EBITmargin guidance of at least 8.5 per cent. JLR China wholesales are seen staying under pressure. In India CV, sequential growth is likely led by better utilisation, improved freight rates and positive customer sentiment. India PV is expected to see sequentially growth in the March quarter wholesales on the back of lower channel inventories and festivities in March.
Nuvama said it is building in a muted revenue and Ebitda CAGR of 2 per cent each for Tata Motors over FY25–27, as it retained its ‘Reduce’ with a target price of Rs 720.
Tata Steel | Target price: Rs 146 The Tata Steel management highlighted that the ramp-up of 5mtpa KPO is progressing well and that the capacity utilisation can reach 80–85 per cent by end-FY25. The closure of blast furnaces has brought fixed cost in the UK lower by 70 per tonne British pound and may continue in Q4FY25, with a breakeven possible in Q2FY26.
"The next phase of 4 mtpa expansion will be at NINL. FY26 could mark an earnings recovery supported by a turnaround in Europe and Kalinganagar ramp-up (7% volume CAGR over FY25–27E). The decision on safeguard duty on imports is likely this month and can boost steel prices," Tata Steel management told Nuvama. The domestic brokerage retained ‘Hold’ with a target price of Rs 146 on the stock.
Trent | Target price: Rs 6,662 Nuvama said P Venkatesalu, Managing Director of Trent, suggested the mantra of profitability, explaining how offering quality products at reasonable prices can unleash scale.The Trent management suggested that keeping the offering relevant is the centrepiece. Alongside, improving absolute profitability is important too. Trent said its store consolidation is aimed at increasing the share in each micro-market. It noted that the Fashion business growth in FY25TD (up 43 per cent) was driven mainly by volume growth (up 39 per cent).
"The management also expects multiple channels to remain relevant. Trent continues to post an industry-leading showing and stays one of our top picks. Our SotP valuation yields a target of Rs 6,662; retain Buy," Nuvama said.
Coforge | Target price: Rs 10,850 The Coforge management suggested that it may continue to report industry-leading growth, as the deal pipeline remains strong with the size of deals increasing. It sees scope of margin improvement, led by operating leverage and fall in ESOP expense.
"Coforge’s strong Q3FY25 performance and solid TCV have set up the base perfectly for 20 per cent-plus YoY growth in FY26. This coupled with margin expansion on ESOP costs coming down should yield a 25 per cent-plus strong earnings CAGR over FY24–27E; retain ‘BUY’ with a target of Rs 10,850 (40x FY27E PE)," Nuvama said.
Cyient | Target price: Rs 1,660 Cyient is actively searching for new CEO both internally and externally. It retained FY25E DET revenue growth guidance of minus 2.7 per cent in constant currency (CC) terms YoY. It said sustainability shall start posting positive growth from Q1FY26. The IT firm retained Q4FY25 exit EBIT margin guidance of 13.5 per cent. The management began FY25 with high single-digit revenue growth guidance, which has been cut repeatedly to a minus 2.7 per cent decline now. The weak exit rate also hurts growth prospects for FY26.
"Inexpensive valuations limit the downside potential. Retain ‘HOLD’ with a target price of Rs 1,660 (20 times FY27E PE)," Nuvama said.
KPIT Tech | Target price: Not rated The KPIT Tech management expects Europe to lead growth. The IT firm saw increased traction in SDV engagements and semi-conductor partnerships and is expecting a strong deal pipeline across geographies. AI a key growth enabler, adding that it is increasing Gen AI investments. Nuvama said KPIT Tech continues to benefit from its strong positioning in the auto vertical, in the three key domains, where spends continue to accelerate. They are autonomous driving (ADAS); electric/hybrid vehicles; and software-defined vehicles (SDV).
KPIT gave a revenue growth guidance of 18–22 per cent CC YoY with a margin guidance of 21 per cent.