The only Nifty stock that doubled in 2023 gets an upgrade with its highest price target

Strengthening margins at JLR, with global luxury carmakers prioritising profitability over volumes was another factor behind the upgrade.

Tata Motors has also maintained a resilient market share in the Passenger Vehicle market in India despite launches from competitors, said JPMorgan. Tata Motors' Passenger Vehicle market share currently stood at 14.4% from just under 5% in financial year 2020.

Lastly, the company's reduction in debt will reduce volatility in Tata Motors' Earnings per Share (EPS) and lead to potential re-rating, according to JPMorgan, who also increased the EPS estimates for financial year 2025 - 2026 by 20% to 30%.

For December, Tata Motors reported a 4% year-on-year jump in Domestic sales to 76,138 units. However, Total CV sales grew by only 1% to 34,180 units.

"Going forward, we expect demand to improve in Q4 across most segments of the CV industry due to the Government’s continuing thrust on infrastructure development, the promising growth outlook of the economy and our demand-pull initiatives," said Girish Wagh, Executive Director of Tata Motors.

Shares of Tata Motors gained over 100% in 2023, making it the only Nifty 50 constituent that doubled during the year. Out of the 34 analysts that track Tata Motors, 28 of them have a "buy" recommendation, two say "hold," while four have a "sell" recommendation.