Global brokerage firm CLSA has upgraded Tata Motors stock to a 'High-Conviction Outperform' from its previous rating of 'Outperform,' with a target price of INR 930, suggesting that the adverse near-term outlook for the company provides an opportunity to enter the stock at a favorable valuation.

The target price set by the foreign brokerage firm signals a substantial 36.4% upside potential in the stock from Monday’s closing price on the BSE.

According to CLSA, Jaguar Land Rover (JLR) is currently trading at 1.2x FY27CL EV/EBITDA, significantly below its normative multiple of 2.5x. The brokerage's sum-of-the-parts valuation implies a per-share value of approximately INR 320 for JLR at the current price, compared to a target valuation of INR 450 per share.

CLSA notes that this difference offers a sufficient buffer against potential impacts from the US tariff hike and weaker-than-expected demand and margin.

The brokerage also anticipates a cyclical revival in the medium and heavy commercial vehicle segment from FY27 onwards, following a period of subdued performance. CLSA believes that this upcoming revival will begin to be reflected in the stock's price over the coming quarters.

Tata Motors share price history

Over the past year, the Tata Motors shares have declined by 26.61%, while the six-month performance shows a 37.09% decrease. In the last three months, the price has dropped by 12.64%, and the year-to-date (YTD) decline stands at 8.66%.

Around 10 am, the shares of Tata Motors were trading 0.5% higher at INR 685 on the BSE.

Tata Motors technical performance

On charts, the shares of Tata Motors are trading below all their significant short, medium as well as long-term exponential moving averages and oscillating near the 39 mark on the relative strength indicator (RSI).

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