Now Nomura has also started coverage for the shares of Tata Motors Commercial Vehicles. The brokerage has given a price target of ₹481 per share with a ‘buy’ rating. Nomura estimates the company’s volume growth to be 10% in fiscal year 2026 and 2027 and 5% in fiscal year 2028. EBITDA margin will increase to 12-13% during FY 2026 to 2028.
Shares of Tata Motors CV rose up to 5 per cent intraday on December 22 after Nomura initiated coverage. The price went up to a high of Rs 414 on BSE. The market cap of the company is more than Rs 1.51 lakh crore.
Nomura also said the recently acquired Iveco trucks business is currently going through a downcycle. Recovery in this is likely to happen only after financial year 2027. As for valuation, Nomura has assigned a 12x EV to EBITDA multiple to the core CV business and a 4x EV to EBIT multiple to Iveco. The brokerage sees more scope for value appreciation from Iveco in the medium term.
Deal to buy Iveco Group in July 2025
Tata Motors had announced a deal to buy Iveco Group in July 2025. This deal is worth about Rs 38000 crore but it does not include Iveco’s defense business. Iveco is a renowned company of commercial vehicles in Europe. After this deal a global commercial vehicle company will be formed. The deal is expected to be completed in 2026.
BofA Securities and JPMorgan have also started coverage
Recently, brokerage firm BofA Securities initiated coverage on Tata Motors CV shares with a “buy” rating on the stock and a price target of Rs 475 per share. JPMorgan initiated coverage with “overweight” rating and price target of Rs 475. BofA Securities expects recovery in the company’s domestic and European business. EBITDA is expected to grow at 15 percent CAGR during FY26-FY28. JPMorgan estimates that the company’s EBITDA will grow at a compound annual growth rate (CAGR) of 13% during fiscal years 2026-2028. This will generate cash flow of $162 billion.
PV and CV businesses are now separate in Tata Motors
Tata Motors has been divided into two parts from 1 October 2025. The passenger vehicle business is now listed in the stock market in the name of Tata Motors PV. The name of commercial vehicle business is Tata Motors Limited. Commercial Vehicle Business was listed on November 12, 2025 at Rs 330.25 on BSE and Rs 335 on NSE. Whereas trading of shares of Tata Motors Passenger Vehicles Limited started on 14 October 2025 at ₹ 400 per share.
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.