Tata Motors Commercial Vehicles (TMCV) shares rose nearly 4% during early trade on June 24 after positive reports from global brokerage firms. The stock gained momentum amid investor buying, with brokerages citing improved demand prospects and potential margin expansion.
TMCV shares opened at ₹404 on June 24 and touched an intraday high of ₹417. The gain came after three major global brokerage firms maintained positive views on the company. Analysts said signs of demand recovery in the commercial vehicle sector and fleet expansion trends have supported investor sentiment.
Global brokerage CLSA has maintained its Outperform rating on Tata Motors CV and set a target price of ₹527 per share.
According to CLSA:
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Freight movement is expected to continue improving.
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Demand for fleet expansion is likely to increase.
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Domestic commercial vehicle industry volumes could record high single-digit growth by FY27.
The brokerage said the commercial vehicle sector could be entering a b upcycle.
HSBC has retained its Buy rating on the stock with a target price of ₹490.
According to HSBC:
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Commercial vehicle demand remains b in the short term.
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Growth in the Medium and Heavy Commercial Vehicle (M&HCV) segment continues.
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The Light Commercial Vehicle (LCV) segment is in the early stages of recovery.
The brokerage said a cyclical recovery in the sector is becoming evident.
Global brokerage Nomura has maintained a Neutral rating on the stock with a target price of ₹402.
While acknowledging improving fundamentals, Nomura said the company’s key strategic priorities remain:
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Increasing market share.
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Maintaining margin stability.
The brokerage also noted that the company aims to achieve a 40% market share by FY28.
The rise in TMCV shares indicates positive market sentiment toward the commercial vehicle sector. Following the brokerage reports, institutional investor interest increased, contributing to higher trading volumes and share price gains.
