Shares of Tata Motors Passenger Vehicles (PV) have rallied 9 per cent so far in February, outperforming the broader market, as improving domestic demand and expectations of a recovery at Jaguar Land Rover (JLR) lift investor sentiment. The stock was trading at ₹382 on the BSE on Tuesday, up 1 per cent in intra-day trade, and has rebounded 14 per cent from its January 21 low of ₹335.35.
In comparison, the BSE Sensex has gained 1.5 per cent during the same period. The stock is on track for its sharpest monthly gain in four months since turning ex-demerger in October 2025.
The rally is being driven by robust demand in the domestic PV segment, supported by recent launches and positive momentum following GST 2.0. Management expects a sharp improvement in Q4FY26, aided by normalization in JLR volumes and stronger deliveries.
While global demand remains challenging, JLR is stepping up brand-led initiatives and cost-saving measures to enhance cash flows. The company has reaffirmed its FY26 guidance, projecting an EBIT margin of 0–2 per cent and free cash outflow of £2.2–2.5 billion, with investment spending of £18 billion planned over five years.
Brokerages remain cautiously optimistic. Analysts at ICICI Securities upgraded the stock to ‘Add’ with a revised target price of ₹410, citing improving domestic margins and production ramp-up at JLR. Meanwhile, BNP Paribas India flagged near-term volatility due to weak global demand but noted domestic performance as a key silver lining.
Despite challenges at JLR, expectations of new product launches and improving operational efficiency have bolstered investor confidence, pushing the stock above several target levels.
