TMPV vs TMCV: From Jefferies To Nomura; Brokerages Choose This Tata Motors Stock

Tata Motors stocks, TMPV and TMCV, have received mixed reviews from top brokerages, which indicate upside potential following their demerger

The stock market is heavily focused on the divergent paths of Tata Motors Passenger Vehicles (NSE: TMPV) and Tata Motors Commercial Vehicles (NSE: TMCV). Following their demerger, both entities are now being viewed differently by major global and domestic financial firms.

This shifting sentiment was evident when Jaguar Land Rover (JLR) held its Investor Day. JLR lowered its FY2027 margin guidance to 4%, raising concerns among institutional investors. As a result, TMPV suddenly declined by 7% to 10% on June 17, 2026, and was finally trading around ₹353 to ₹363 by the end of June.

International brokerages are expressing considerable skepticism about the passenger vehicle segment. For example, Jefferies has maintained an “underperform” rating on TMPV and set a cautious target price of ₹300 per share, implying a 21% downside risk. Bank of America (BofA) Securities also has an “underperform” view and has set a target price of ₹335 per share for TMPV.

Conversely, some domestic market specialists are highly optimistic about the long-term growth of the passenger car segment. Nuvama Alternative Research recently gave TMPV a “buy” rating, projecting a 32% upside potential with a target price of ₹470 per share.

Meanwhile, market sentiment appears more positive for TMCV, the commercial vehicle arm. By the end of June 2026, TMCV stock was trading between ₹400 and ₹432 per share, driven by strong domestic commercial vehicle demand and market share gains.

Brokerages view TMCV as a separate entity from JLR’s international challenges. The company’s recent strategic initiatives, including a potential partnership with global manufacturer Iveco, are seen as key drivers for its international operations. The table below shows how leading brokerages rate the two separate entities:

CLSA noted that non-cyclical segments within the commercial vertical could grow 1.5 times faster than its standard core operations, reducing overall revenue volatility. The firm estimates a robust return on capital employed (RoCE) of 30% to 35% for TMCV, with a free cash flow conversion rate of 7% to 9% of its total revenue.

Similarly, HSBC issued a clear “buy” recommendation on TMCV, setting its one-year forecast target at ₹490 per share. HSBC analysts noted strong demand in the medium and heavy commercial vehicle categories and signs of operational recovery in light commercial vehicle fleets.

Although Nomura cautiously maintained a “neutral” rating with a target price of ₹402 per share, it agrees that TMCV’s focus on pricing discipline is working. Ultimately, investors choosing between the two standalone companies will need to weigh global weaknesses impacting TMPV and local, macro-driven growth boosting TMCV.