Geojit Financial Services research report onTata Motors
Tata Motors Ltd is a leading automobile manufacturer in India that designs, manufactures and sells commercial vehicles (CVs). Consolidated revenue rose 19.3% YoY to Rs. 20,667cr in Q1FY27, driven by stronger domestic/export CV volumes. Commercial Vehicle revenue increased 19.8% YoY to Rs. 20,384cr, led by strong CV wholesales, resilient freight demand, new launches and export growth. Total CV sales grew 26.7% YoY to 108,488 units, supported by broad-based CV demand and export traction, including Indonesia-related orders. EBITDA rose 8.3% YoY to Rs. 2,145cr; however, EBITDA margin declined 106bps YoY to 10.4%, primarily due to commodity inflation in steel, aluminium, copper and other raw materials. Adjusted profit after tax (PAT) increased 5.7% YoY to Rs. 1,484cr, driven by volume growth and lower finance costs.
The company has secured final clearance from the European Central Bank for the €3.8 bn Iveco acquisition. We have upgraded our rating on the stock to BUY from HOLD, with a target price of Rs. 482 based on SOTP valuation.
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