HSBC says "Buy" Tata Motors commercial vehicles after demerger
HSBC has given Tata Motors Commercial Vehicles (TMLCV) a thumbs up with a "Buy" rating, following its recent split from the main company.
The bank's price target is ₹380, while shares are currently trading at ₹320.1 (NSE) or ₹320.5 (BSE)—slightly below their debut price of ₹330 on November 12.
Why does this matter?
The demerger lets TMLCV stand on its own, making it easier for investors to judge its true value.
HSBC sees strong earnings ahead and believes TMLCV's edge in medium and heavy commercial vehicles could push the stock higher.
Right now, commercial vehicle stocks trade at lower valuations than passenger vehicles, so there's room for growth if business keeps improving.
What's behind HSBC's optimism?
HSBC points to TMLCV's focus on keeping margins healthy and sees potential for the valuation gap with rivals to close.
Analysts think there's real potential for gains as efficiency improves post-demerger.