Home / Business and Economy / Tata Motors CV Spinoff Unlocks Hidden Value, Analysts Forecast Soaring Valuations
Tata Motors CV Spinoff Unlocks Hidden Value, Analysts Forecast Soaring Valuations
15 Oct
Summary
- Tata Motors CV shares pegged at ₹260.75, but analysts see higher target of ₹365
- Tata Motors PV shares trading at ₹400, implying ₹260.75 value for Tata Motors CV
- Analysts expect immediate value-unlocking for Tata Motors CV, with share price settling at ₹380
As of October 16, 2025, Tata Motors Ltd. has completed its demerger, with the focus now shifting to the performance of Tata Motors CV, the company's commercial vehicle division. While the demerger "pegged" the Tata Motors CV share price at ₹260.75, analysts at Nomura Financial Advisory and Securities (India) Pvt. Ltd. have a higher target price of ₹365 for the truckmaker.
After the demerger, Tata Motors PV shares started trading at ₹400 apiece, implying a value of ₹260.75 for the Tata Motors CV shares. However, the analysts at Nomura expect immediate value-unlocking for the CV business, with the share price potentially settling at ₹380.
The analysts cite the global reach and synergies from Tata Motors' recent acquisition of Iveco as a key factor driving the re-rating of the CV business. Additionally, they remain optimistic about the recovery in India's commercial vehicle sales, which are expected to pick up in the second half of fiscal year 2026 due to a reduction in the GST rate on trucks and buses, as well as replacement demand from infrastructure, construction, and logistics sectors.
Despite the positive outlook for the CV business, the road ahead for Tata Motors' passenger vehicle (PV) division remains challenging, with headwinds such as intense EV rivalry in India and the ongoing transition of Jaguar to an all-electric lineup.
