These tariffs will take effect on April 2, the day Trump will also be announcing reciprocal tariffs on countries, on which clarity is still awaited.
The US is a key market for Jaguar Land Rover as nearly one-third of its sales in 2024 came from North America, majorly from the US. As per JLR’s annual report for the financial year 2024, 22% of its overall sales came from the US market.
The management of Tata Motors had recently reiterated that JLR will meet its fourth quarter guidance of 10% EBIT margins and also be net debt free by the end of the current financial year. The comments sparked a recovery in the stock from its 52-week low of ₹606.
Most of the brokerages who came out with commentary post interacting with the company’s management said that they would await more clarity on the tariff aspect as that uncertainty continues to persist, despite many suggesting that the risk-reward for shares of Tata Motors has now turned favourable post the steep fall the stock saw from its July 2024 peak.
CLSA has a “high conviction outperform” rating on Tata Motors and said in a note on March 12 that the stock is trading at 1x financial year 2027 Enterprise Value-to-EBITDA, which is well below the normative multiple of 2.5x.
Nuvama had highlighted on the same day that in case the US does impose tariffs, JLR will have to offset that through price hikes and cost savings.
Shares of Tata Motors have recovered 16% from their 52-week low and ended Wednesday’s trading session 0.4% lower at ₹707. Despite this recovery, the stock is still down 40% from its peak of ₹1,179, which it had surged to on July 30 last year.
First Published: Mar 27, 2025 6:29 AM IST
