Tata Motors Shares rises, consider ₹2,000 cr debenture issue as HSBC upgrades stock

Tata Motors Ltd announced it will hold a board meeting on March 19, 2025, to consider issuing rated, listed, unsecured, redeemable, non-convertible debentures worth up to ₹2,000 crore on a private placement basis, according to a filing with the BSE.

The announcement comes as HSBC upgraded its rating on Tata Motors to “Buy” from its previous position, though it reduced its target price to ₹840 per share from ₹930. HSBC cited reasonable valuations following a de-rating over the past 2-3 quarters as the primary reason for the upgrade.

According to the HSBC report, Tata Motors’ Jaguar Land Rover division is currently trading at 1.8 times FY26 estimated EV/EBITDA, which is at the lower end of its historical average.

The stock market responded positively to these developments, with Tata Motors shares trading at ₹662.15 as of 11.25 a.m. on March 17, 2025, representing a gain of ₹6.65 or 1.01 per cent from the previous close of ₹655.50. The stock opened at ₹665.05 and reached an intraday high of ₹666.45 and a low of ₹659.05.