Tata Motors PV (TMPV IN) Hold: Near-term optimism

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Tata Motors PV (TMPV IN) Hold: Near-term optimism

so tracking well, with typical wait times of 3-4 months.

470.00

◆ Pipeline of new launches: Management has indicated two additional product

launches in FY27, which should further underpin market share momentum. 370.00

◆ JLR moving past recent headwinds: JLR appears to be emerging from a “perfect 05/25 11/25 05/26270.00

storm”, having absorbed the impact of US tariffs, China’s consumption tax, and the TargetHigh: 445.80price: 410.00Low: 296.20 Current: 361.35

cyber-attack. This suggests the most challenging period is likely behind the business. Source: LSEG IBES, HSBC estimates

◆ Favourable FX translation: INR depreciation against GBP should provide a positive

translation impact on JLR earnings. Yogesh Aggarwal*

Head of Research, India

However, there are risks offsetting the tailwinds: HSBC Securities and Capital Markets (India) Private Limited yogeshaggarwal@hsbc.co.in

◆ Firstly, domestic margin trajectory is still unclear: The company reported a +91 22 2268 1246

decent improvement in margins in 4Q26 at 4.6% EBIT. This, however, was led by Vipul Agrawal*, CFA

PLI benefit of 2.4%. In FY27, there is a significant commodity headwind, and it may Analyst, India Automotive

HSBC Securities and Capital Markets (India) Private Limited

not be prudent to give valuation multiple to the PLI benefit. vipul.agrawal@hsbc.co.in

+91 97690 51842

◆ JLR business may be at bottom, but lack of new launches and high capex leads to

Ayush Jhunjhunwala*

limited upside triggers for the business. Near-term margins are supported by hedging Analyst, Autos and Auto Ancillary

gains and high R&D capitalisation, both of which we believe are unsustainable. HSBC Securities and Capital Markets (India) Private Limited

ayush.jhunjhunwala@hsbc.co.in