Tata Motors Share Price: JLR, CV business outlook prompts CLSA to raise earnings estimates, target

CLSA has also raised margin estimates for Tata Motors' Commercial Vehicle business on the back of falling commodity costs since the March quarter of financial year 2023 and stable pricing. For the current financial year, the brokerage expects EBITDA margin of 10.5 percent, which is in-line with the management's guidance of double-digits.

According to an investor presentation by JLR earlier this month, the luxury car unit of Tata Motors is targeting revenue of over £28 billion by the current financial year and £30 billion by financial year 2026. The company also stated that its average revenue per unit currently stands at over £70,000.

In the financial year ended March 2023, JLR had clocked revenue of £22.81 billion.

Shares of Tata Motors are trading 2.4 percent higher at Rs 587.3. The stock is trading at a new 52-week high and ranks among the best performers on the Nifty 50 index in 2023. Sentiment around Tata Motors also received a boost after market regulator SEBI approved the IPO of Tata Technologies Ltd., making it the first Tata-group IPO in nearly two decades.