Tata Motors Commercial Vehicle Shares Rise 3% Amid Cautious Broker Sentiment
Tata Motors CV shares jump 3% but brokerages are cautious. Here’s why
The Economic Times
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Tata Motors' commercial vehicle shares increased by 3% to Rs 390.65 on the NSE, recovering from previous losses despite mixed reactions to Q4 FY26 earnings. While the company reported a 70% YoY profit rise, brokerages like Nomura and Motilal Oswal expressed caution due to geopolitical risks and rising commodity costs.
- 01Tata Motors reported a standalone net profit of Rs 2,406 crore for Q4 FY26, a 70% increase from the previous year.
- 02Nomura downgraded Tata Motors CV shares from ‘Buy’ to ‘Neutral’ and set a target price of Rs 402, reflecting a 27% reduction.
- 03JM Financial maintained a ‘Buy’ rating but reduced its target price to Rs 555, citing strong Q4 EBITDA margins despite rising raw material costs.
- 04Motilal Oswal kept a ‘Neutral’ rating with a target price of Rs 416, noting lower-than-expected other income affecting profit estimates.
- 05The company announced a final dividend of Rs 4 per share, pending shareholder approval at the upcoming AGM.
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Tata Motors' commercial vehicle shares rose approximately 3% on Friday, reaching an intraday high of Rs 390.65 on the National Stock Exchange (NSE). This recovery comes after the company reported its Q4 FY26 earnings, which showed a 70% year-on-year increase in standalone net profit, amounting to Rs 2,406 crore, and a 22% rise in revenue to Rs 24,452 crore. Despite these positive figures, brokerages have adopted a cautious stance. Nomura downgraded the stock from ‘Buy’ to ‘Neutral’, citing risks from geopolitical tensions, potential fuel price hikes, and margin pressures from rising commodity costs. JM Financial retained a ‘Buy’ rating but lowered its target price to Rs 555, highlighting a strong EBITDA margin performance despite cost challenges. Meanwhile, Motilal Oswal maintained a ‘Neutral’ rating with a target of Rs 416, indicating concerns over profit margins amid changing market dynamics. Tata Motors also announced a final dividend of Rs 4 per share, subject to approval at its Annual General Meeting.
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The cautious outlook from brokerages may affect investor sentiment and stock performance, potentially influencing Tata Motors' ability to attract further investment.
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