Tata Steel, Tata Motors: Target prices on 2 retail-favourite Tata stocks

Retail-favourite Tata group companies Tata Steel and Tata Motors have recently come out with their March quarter results, following which a host of analysts revised their targets on the two stocks. Tata Steel's Ebitda met the consensus estimates, while Tata Motors' margins were largely in line with the Street expectations.      

Tata Motors is well-placed to weather near-term risks. It's valuations remained attractive, said Emkay Global as it suggested a target of Rs 800 on the stock. The same brokearge retained its 'Buy' rating on Tata Steel with a target of Rs 185. 

JM Financial said Tata Steel reported a strong performance driven by Indian operations and cut in Europe losses. It suggested a target of Rs 180 on Tata Steel, but feels global uncertainty and tariff overhang may weigh on Tata Motors' outlook. For the JLR-owner, JM suggested a target of Rs 810.

Tata Motors had 66.02 lakh small investors, holding up to Rs 2 lakh worth shares as of March 31. In the case of Tata Steel, 59.45 lakh retail investors owned the steel stock at the end of March quarter.

Nuvama said it is building in a muted revenue and Ebitda CAGR of 3 per cent each for Tata Steel over FY25–27. For JLR, it expects a volume contraction due to discontinuance of ‘Jaguar’ models, loss of market share in China and tariff implementation in US. 

"Moreover, we expect a muted showing in the India CV division (2% CAGR) on reasonable utilisation levels with transporters, increasing competition from Railways and a high base. Retain ‘REDUCE’ with an SotP-based target of Rs 670 (earlier Rs 720)," it said.

On Tata Steel, Nuvama estimated Q1FY26 Ebitda per ton increase of Rs =2,000 sequentially due to higher prices and lower coal cost, offset marginally by softer volume. Europe operations should start yielding positive Ebitda from Q1FY26E, it forecast.

"We are retaining FY26E Ebitda, but raising FY27 Ebitda by 6 per cent to factor in higher profits in Europe amid lower fixed cost. Our FY27E SotP yields a target of Rs 177 (earlier Rs 164); upgrade to ‘BUY’," Nuvama said.

YES Securities said that despite sharp correction in the Tata Motors stock, it would still wait for better entry point in Tata Motors and prefer M&M, Hyundai Motors, TVS Motor and Eicher Motors among OEMs.

It valued Tata Steel on a SOTP basis and revised its target price downward to Rs 162 per share against Rs 168 share earlier.