Tata Motors Ltd is poised for market attention following the stellar performance of its British subsidiary, Jaguar Land Rover (JLR), in the December quarter. JLR reported an impressive 27% year-on-year surge in total wholesales, reaching 101,043 units.
Tata Motors, in a BSE filing, stated that this period marked its highest wholesales in 11 quarters, demonstrating robust demand for JLR products. Although the detailed breakdown between Jaguar and Land Rover wholesales wasn't provided, Tata Motors highlighted strong demand for specific models, with Range Rover, Range Rover Sport, and Defender representing a substantial 76% of the order book.
The third quarter also showcased a noteworthy 29% increase in retail sales, totaling 109,140 units, including the Chery Jaguar Land Rover China joint venture. Region-wise, year-on-year retail volume growth was substantial in the UK (55%), overseas (49%), China (28%), Europe (27%), and North America (6%). These positive retail figures indicate widespread demand and solidify Tata Motors' presence in key markets.
Motilal Oswal, a prominent brokerage firm, remains optimistic about Tata Motors' outlook, projecting a healthy recovery for JLR. The brokerage firm foresees potential growth moderation in Tata Motors' Passenger Vehicle (PV) and Commercial Vehicle (CV) businesses due to normal base effects and slowdowns in lower-end PV and LCV segments. However, Motilal Oswal expects sustained growth for JLR, underpinned by the gradual recovery in global PV demand, a robust order book, and a favorable product mix.
In light of Tata Motors' overall performance and its growth potential in the automotive sector, Motilal Oswal maintains a BUY rating on the stock. The brokerage firm has set a target of Rs 900, based on the March 2026 Sum of the Parts (SOTP) valuation. The Tata Motors stock has demonstrated strong market performance, recording a notable 9.48% increase in the past month and an impressive 102% surge over the last year.
As per Motilal Oswal's evaluation, the stock currently trades at 18.3 times its FY24 consolidated Earnings Per Share (EPS) and 15.9 times FY25E EPS, reinforcing its positive market standing. Additionally, the stock is assessed at 5.7 times FY24E consolidated Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) and 4.6 times FY25 EV/EBITDA.
