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Tata Motors Commercial Vehicles (TMCV) has seen a strong performance since its stock market debut and is currently trading close to its 52-week high.

The stock is currently trading around Rs 398.25, up 3 per cent from its previous close of Rs 386.70. In the early trading session on Thursday, the stock touched Rs 403.10, which is also its 52-week high.

The stock was listed at Rs 335 on the NSE and Rs 330.25 on the BSE. The stock is currently trading around 19 per cent up from its listing price.

Brokerages have initiated coverage on Tata Motors with positive ratings. JP Morgan has initiated an Overweight rating with a target price of Rs 475, citing expectations of a recovery in the Indian commercial vehicle cycle after three years of weak growth, pricing discipline among large players leading to margin and ROCE expansion, and the potential value accretion from the Iveco acquisition as the European truck cycle bottoms out.

JP Morgan forecasts EBITDA and EBIT CAGRs of 13 per cent and 16 per cent, respectively, for FY26–28, with free cash flow generation of Rs 162 billion.

Bank of America Securities (BoFA) has initiated coverage with a Buy rating and a target price of Rs 475. The brokerage expects a rebound in both Indian and European truck cycles and estimates an EBITDA CAGR of around 15 per cent over FY26–28.

It also sees scope for valuation re-rating supported by stable market share, margin discipline, ROCE above 35 per cent through the cycle, lower regulatory and EV-related risks, and equity value accretion from the Iveco deal.

From the current trading level, the target price of Rs 475 implies an upside potential of around 19 per cent, which would place the stock above its previous 52-week high.

Tata Motors, which now houses the company’s commercial vehicle business, reported a consolidated net loss of Rs 867 crore in the September quarter, mainly due to mark-to-market losses of Rs 2,026 crore related to its investment in Tata Capital.

In comparison, the newly listed firm had posted a net profit of Rs 498 crore in the July–September quarter of the previous fiscal year.

Total revenue from operations rose to Rs 18,585 crore from Rs 17,535 crore in the year-ago period, while profit before tax increased to Rs 1,694 crore in the second quarter from Rs 1,225 crore a year earlier, according to a regulatory filing.