Tata Motors’ India business was a big drag in the past decade but now forms 50 percent of the price target set by Jefferies for FY26, wrote the brokerage’s analysts in their latest report.
The report came after the company made its presentation on India Investor Day, where the company shared its plans to raise its market share in passenger vehicles (PVs) and increase its non-vehicle revenues in commercial vehicles (CVs).
Jefferies’ price target is Rs 1,250 on EV/EBITDA estimates for FY26-or 28 percent above the current market price of Rs 989-of which Rs 263 is from India CVs and Rs 370 from India PVs (including electric vehicles) verticals. The remaining is from JLR (Rs 570) and value of Tata Technologies state (Rs 46).
The brokerage has valued the company’s India CV business at 10x FY26E EV/EBITDA, India PV at 18x FY26E EV/EBITDA, JLR at 3.8x FY26E EV/EBITDA, the India EV business at Rs 70/sh (0.5x transaction value in stake sale to TPG) and value of the stake in Tata Technologies at Rs 46/sh (25 percent holco discount to market value).
