UBS Recommends 'Buy' on Tata Motors CV, Ashok Leyland; Sees Significant Upside
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CNBC TV18•28-01-2026, 09:02
UBS Recommends 'Buy' on Tata Motors CV, Ashok Leyland; Sees Significant Upside
- •UBS initiated a 'buy' rating on Tata Motors CV with a target price of ₹550, indicating a 23.65% potential upside.
- •The brokerage raised its target price for Ashok Leyland by 92.3% to ₹225, suggesting a 16.4% upside.
- •UBS believes the commercial vehicle sector's structural strengths are often overlooked by investors.
- •Despite global premium valuations for CV stocks, Indian CV stocks trade at a discount due to past volatility concerns.
- •Tata Motors' CV business is expected to outperform passenger car and two-wheeler segments in profitability and free cash flow over the next 2-3 years, with the demerger freeing capital for reinvestment.
Why It Matters: UBS sees significant upside for Tata Motors CV and Ashok Leyland, citing overlooked sector strengths.
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