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Tata Capital Share Price Target: Tata Group’s newly listed financial services arm, Tata Capital Ltd, has received a positive outlook from global brokerage JP Morgan, which has initiated coverage on the stock with an ‘Overweight’ rating and a target price of Rs 370.

This implies an upside of nearly 15 per cent from Tuesday’s closing price.

JP Morgan said Tata Capital is well-positioned to deliver strong, system-leading growth owing to its robust liability profile, diversified product mix, and wide omnichannel distribution network.

The brokerage noted that the company is in a strong position to expand market share over the coming years.

Tata Capital currently trades at Rs 320.70, down 0.25 in today’s session.

The report highlights Tata Capital’s conservative “risk before growth” approach, which has helped maintain industry-best GNPA levels and low credit costs. JP Morgan believes this provides confidence in the company’s ability to handle asset-quality pressure during downturns.

The brokerage expects FY26 RoA to moderate to 1.9 per cent, partly due to the merger with TMFL, and noted that this remains lower than peers. However, it sees room for improvement driven by better NIMs, lower credit costs, and operating efficiency.

JP Morgan forecasts a 30 per cent CAGR in net profit between FY26–FY28, with RoE improving to 13.5–14.7 per cent and RoA rising to around 2.1 per cent.

At 2.6x FY27E P/B, the brokerage said the risk-reward remains favourable for investors.

Tata Capital’s initial public offering, which was open for subscription between October 6 and October 8, 2025, garnered steady investor interest within its price band of Rs 310 to Rs 326 per share. The share allotment was completed on October 9, 2025, followed by the listing on the BSE and NSE on October 13, 2025.

The stock made a modest market debut, opening at Rs 330 on both exchanges, slightly above the upper end of the price band.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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