Tata Motors has recently seen a significant boost in its stock price, rising by over 2% on March 18. This uptick follows the company’s announcement on March 17, revealing plans to increase the prices of its commercial vehicles by up to 2%, effective April 1, 2025. The price adjustment is aimed at mitigating the impact of escalating input costs and will apply to various models and variants across the board.

HSBC Upgrades Tata Motors Stock Rating

In a fresh analysis, the global brokerage firm HSBC has elevated its rating for Tata Motors to ‘Buy’. The firm has adjusted its target price to Rs 840 per share, suggesting a promising 29% upside from current trading levels.

While HSBC maintains an optimistic outlook, it has reduced its previous target from Rs 930 due to shifting market dynamics. Nevertheless, the brokerage is confident that several positive factors could enhance the company’s margins.

Understanding the Price Increase

As the largest manufacturer of commercial vehicles in India, Tata Motors has stated that the upcoming price hike is essential to address rising production costs. In its exchange filing, the company noted, “This increase is designed to counteract the increase in input costs and will differ across individual models and variants.”

Additionally, Maruti Suzuki, a key competitor in the automotive industry, has also declared a price hike of up to 4%, attributing this decision to heightened operational costs and inflationary pressures.

Tata Motors’ Stock Performance Overview

The stock performance of Tata Motors has been somewhat volatile over the past year. With a market capitalization of Rs 2.47 lakh crore, the stock has only seen a slight gain of 1% in the last five days. However, it has experienced a decline of nearly 2% over the past month.

Examining the broader picture, Tata Motors has faced a 30% drop in stock value over the last six months and is down 31% year-on-year. Year-to-date (YTD), the stock has lost 10% of its value. Its 52-week high and low are recorded at Rs 1,179 and Rs 606.30 per share, respectively.

Key Takeaways

• Recent Stock Surge: Tata Motors shares rose over 2% on March 18.
• Upcoming Price Increase: Effective April 1, 2025, commercial vehicle prices will rise by up to 2%.
• HSBC’s Upgraded Rating: Tata Motors is now rated as a ‘Buy’ with a target price of Rs 840 per share.
• Competitor Price Hikes: Maruti Suzuki also announced a price increase of up to 4%.

With the market dynamics shifting, investors are closely watching Tata Motors’ strategies in response to rising costs and competition.