Tata Motors Share Price Target: Emkay Sticks to Rs 800 Target — Will You Buy, Sell or Just Watch?

Tata Motors, which recently announced its Q4 FY25 results, has received a fresh vote of confidence from Emkay Global Financial Services, which has reiterated its ‘Buy’ rating on the stock and kept its Rs 800 target price unchanged.
The brokerage firm remains upbeat on the automaker’s long-term prospects, citing robust free cash flow generation at Jaguar Land Rover (JLR), stable margins in India, and a healthier balance sheet despite macroeconomic challenges.
Tata Motors' fourth-quarter results were broadly in line with expectations, with revenue and operating profit showing little movement year-on-year. Its consolidated revenue came in at ₹1.19 lakh crore, while EBITDA stood at Rs 16,630 crore, helped by a sequential drop in other expenses that lifted margins by 290 basis points to 13.9%.
In India, commercial vehicle (CV) and passenger vehicle (PV) margins were largely stable at 12.2% and 7.7%, respectively, underscoring operating discipline in a mixed demand environment, according to Emkay Global.

JLR Free Cash Flow Surges

According to Emkay Global, the standout in the quarter was JLR’s financial performance. The British marquee brand generated free cash flow of £1.35 billion in Q4, pushing full-year FCF to £1.5 billion. A sharp improvement in working capital, to the tune of £1 billion, helped the company swing to a net cash position of £278 million—a stark turnaround from its earlier indebted profile.
However, the outlook for the near term remains cautious. JLR expects weaker volumes in Q1 FY26, following a strong Q4 push in anticipation of tariff-related disruptions. The company has deferred its margin guidance amid lingering global uncertainties but reaffirmed its commitment to an £18 billion investment roadmap over five years, which will be funded entirely through internal accruals.
Range Rover’s upcoming battery electric vehicle (BEV) has already garnered a waitlist of 62,000 units, and Jaguar’s next-generation four-door model is expected to debut in 2026.

Also Read: Tata Motors Q4 Results 2025: TaMo's Net Profit Slumps 51% To Rs 8,470 Cr; JLR, CV Shine, PV Struggles | Republic World

Steady Domestic Market

On the domestic front, Emkay flagged a modest improvement in the CV industry outlook, led by heavy commercial vehicles (HCVs), with industry growth projected in the single digits for FY26.
In the PV segment, Tata Motors is banking on refreshed hatchback offerings and new EV models to outpace industry growth. The company expects to boost PV margins by about 300 basis points, bolstered by cost savings and a better product mix, although higher raw material costs may partly offset the gains. Importantly, Tata Motors is aiming to maintain over 50% share of the domestic EV market.

Valuation Comfortable, Profitability Intact

While Emkay has trimmed its FY26 and FY27 earnings estimates by 2–3% to reflect more conservative margin assumptions, it emphasized that Tata Motors continues to benefit from strong execution and financial discipline. The stock is currently trading at around 1.6 times FY27 estimated book value, which the brokerage believes is undemanding given the strides the company has made in recent years.

“While near-term growth challenges persist, we believe profitability—and by extension, balance sheet health—should remain largely intact, driven by prudent cost management and an improving product mix,” Emkay said in its note.

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