By Tata Motors has once again emerged as India’s most valuable automaker, reclaiming its prestigious position after seven long years, surpassing long-standing leader Maruti Suzuki in market capitalization. This significant shift underscores Tata Motors’ resurgence in the Indian automotive industry and its growing global footprint. The latest milestone for Tata Motors comes with a staggering market capitalization of Rs 3.27 trillion on the Bombay Stock Exchange (BSE), outpacing Maruti Suzuki’s Rs 3.16 trillion. This achievement is fueled by a remarkable surge of 10% in Tata Motors’ stock over the past month, driven primarily by the stellar performance of its UK-based luxury vehicles subsidiary, Jaguar Land Rover (JLR).
JLR’s impressive sales and margin performance have bolstered investor confidence, with Tata Motors also meeting its free cash flow targets, further enhancing its appeal to investors. This resurgence marks a return to form for Tata Motors, which last held the top spot in 2017 before ceding ground to Maruti Suzuki. Notably, Tata Motors’ ascent to the summit is also a testament to the dynamic nature of the Indian automotive landscape. Alongside Tata Motors and Maruti Suzuki, other top contenders in India’s automotive hierarchy include Bajaj Auto, Mahindra & Mahindra, and Eicher Motors.
The bullish outlook on Tata Motors is reinforced by JP Morgan’s re-rating of its stock, setting a price target of Rs 925. The optimistic forecast is underpinned by expectations of robust margin and free cash flow delivery at JLR, alongside resilient market share and margins in India’s passenger vehicles segment. Jaguar Land Rover’s impressive performance, reporting a substantial 27% year-on-year growth in Q4FY24 wholesales, further underscores Tata Motors’ potential for sustained growth and profitability. With higher sales and a favourable product mix anticipated from JLR, analysts predict improved operating margins in Tata Motors’ upcoming third-quarter earnings announcement slated for February 2.
