Tata Motors Commercial Vehicles (TMCV IN) (Neutral) - Driving growth through multiple engines

Research evidence excerpt

Tata Motors Commercial Vehicles (TMCV IN) (Neutral) - Driving growth through multiple engines

Nomura | Tata Motors Commercial Vehicles 23 June 2026

Company profile

Tata Motors, India’s market leader in commercial mobility, now operates as a standalone powerhouse with a legacy of over eight decades. Its

comprehensive portfolio serves diverse applications—from last-mile delivery to long-haul freight and public transportation. Effective 1 October 2025,

Tata Motors has demerged its Commercial Vehicles business into TML Commercial Vehicles Limited (TMLCV), a wholly owned subsidiary. With

sharper strategic focus and agility, the company leads with next-generation offerings, including advanced powertrains, connected technologies, and

smart fleet solutions that power progress and shape the future of logistics and infrastructure. It is a leading manufacturer of commercial vehicles with

1,831 touchpoints and a diverse portfolio of products.

Valuation Methodology

We value TMCV at 11x FY28F EV/EBITDA to arrive at a TP of INR402. We add INR16 per share for stake in Tata Capital, INR111 per share for the

stake in Iveco and subtract financing debt of INR115 per share for acquisition financing debt of Iveco. The benchmark index for this stock is Nifty 50.

Risks that may impede the achievement of the target price

Upside risks: Better-than-expected growth in the domestic market. Downside risks: Slower economic activity; impact from the ramp-up of dedicated

freight corridor (DFC) of railways.

ESG

Tata Motors’ commercial vehicle business is aligned with India’s sustainability transition through increasing electrification (electric buses, intra-city

trucks), BS-VI compliant engines, and investments in alternative fuels such as CNG and hydrogen pilots.