HSBC Initiates Coverage on Tata Motors CV Arm with 'Buy', Raises Ashok Leyland Target

Overview

HSBC brokerage firm has started covering Tata Motors' demerged commercial vehicle business (TMLCV), giving it a 'Buy' rating and a ₹380 price target. They also increased Ashok Leyland's price target to ₹160 from ₹145, keeping a 'Hold' rating. HSBC values both at 14 times FY27 EV/EBITDA, seeing potential for CV valuations to re-rate closer to PV valuations.