Thu Dec 26 04:10:00 UTC 2024: ## Tata Motors Stock Receives Buy Rating with ₹970 Target Price

**Mumbai, India** – LKP Securities has issued a buy rating for Tata Motors stock, setting a target price of ₹970. This represents a potential upside of 34% from the current price of around ₹722. The brokerage firm acknowledges near-term headwinds for Tata Motors’ businesses, including weaker demand for luxury cars, particularly in China and Europe, impacting Jaguar Land Rover (JLR)’s gross margins and lower volumes in the passenger vehicle (PV) and commercial vehicle (CV) segments due to weak retail sales and higher inventory levels.

Despite these challenges, LKP Securities anticipates a recovery. They forecast improvement in the domestic CV business from FY26E driven by increased government spending on infrastructure and construction projects. Furthermore, they project a gradual improvement in the JLR business in the second half of FY25 as supply chain issues ease, and enhanced market share in the PV segment in FY26-27E due to new product launches across multiple powertrains.

Tata Motors’ September quarter profit declined by 9.9% to ₹3,450 crore, primarily due to lower sales. Operating income also decreased to ₹1,00,534 crore compared to ₹1,04,444 crore in the same quarter last year. JLR revenue was down 5.6% to £6.5 billion.

While Tata Motors stock is currently trading at approximately 39% below its 52-week high of ₹1179 (reached on July 30, 2024), LKP Securities’ positive outlook suggests significant growth potential. The stock has also seen a 7.5% decline over the past month.

**Disclaimer:** *This news article is based on information provided by LKP Securities. Financial Express does not endorse any specific investment advice. Market risks exist; consult with a financial expert before making investment decisions.*

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