Tata Motors CV: Investor Day: Broadening moat to drive share & margin gains. Re-rating ahead

Research evidence excerpt

Tata Motors CV: Investor Day: Broadening moat to drive share & margin gains. Re-rating ahead

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at early stage of turnaround led by product/ service fixes & alternate powertrains. Price 400.05 INR

Overall, TMCV’s market leadership is underpinned by 1. Wide portfolio covering large Price Objective 515.00 INR

tonnage, multi fuel and even niche industry applications (mining, bus); 2. Huge emphasis Date Established 24-Jun-2026

on TCO with better fuel efficiency, predictive maintenance with deep service reach and Investment Opinion C-1-7

enhanced uptime. There is 5-7% lead over competition in TCO; 3. Driver comfort, safety 52-Week Range 306.00 INR-509.00 INR

(ADAS) and connected vehicles are increasingly important areas of differentiation. Mrkt Val / Shares Out (mn) 15,559 USD / 3,682.5

Not cyclical anymore. Fleet Edge credible logistic tech play MarketAverageValueDaily (mn)Value (mn) 1,473,18048.56 USDINR

An overarching message across interactions was reducing cyclicality, improving margin Free Float 56.6%

resilience and WC efficiency. Focus is on enhancing annuity stream from value added BofA Ticker / Exchange XTMCF / NSI

services for fleet operators, sales of spares & aggregate & tap international markets. Bloomberg / Reuters TMCV IN / TATM.NS

Fleet Edge with 1.2m connected vehicles is a backbone of the “Data is moat” strategy. ROE (2026E) 59.1%

Estimates (Mar) (Rs) 2024 2025A 2026E 2027E 2028E Net Dbt to Eqty (Mar-2025A) 43.9%

Net Income (Adjusted - mn) NA 35,120 68,760 64,476 77,029

EPS NA 9.54 18.67 17.51 20.92

EPS Change (YoY) NA NA 95.8% -6.2% 19.5% Tata Motors CV: Beyond the cycle:

Dividend / Share NA 0 4.00 4.38 5.23 Share gains, resilient margins & Iveco

Free Cash Flow / Share NA 24.19 27.59 14.74 19.83 upside

Valuation (Mar)