Commercial vehicle shares of Tata Motors valued at Rs 261 after demerger. What do analysts say?

The much-awaited demerger of Tata Motors has put the spotlight on its recently demerged commercial vehicle business, valued at around Rs 260.75 per share. This estimate is based on the pre-split closing price of Rs 660.75 and the post-split opening level of Rs 400 for the parent company, now renamed Tata Motors Passenger Vehicles Ltd (TMPV).

The date for listing of Tata Motors Commercial Vehicle Ltd (TMLCV), the demerged entity, remains undecided. However, India’s largest electric vehicle maker suggests the listing could take up to 60 days, possibly in mid-November or December.

The demerger officially took effect with October 14 as the record date, marking the separation of Tata Motors’ passenger and commercial vehicle businesses. Under the terms of the split, shareholders who hold shares before this date will receive one TMLCV share for each existing share.

The new entity will be listed on both the NSE and BSE after regulatory approval, with share allotment expected to reflect in demat accounts within 30 to 45 days.

Given the company’s recent challenges and weak financial performance, analysts believe this move will provide a better view of each business segment and allow investors to value them individually. Nomura valued TMPV at Rs 367 and TMLCV at Rs 365, while warning of near-term “technical volatility” as the shares adjust to pre-split levels. SBI Securities expects TMPV to trade between Rs 285 and Rs 384, supported by JLR’s improving profitability, and expects a range of Rs 320-470 for TMLCV, taking into account the planned €3.8 billion acquisition of Iveco Group NV’s commercial vehicles business.

TMPV, which continues to generate about 87% of revenue from JLR, is expected to achieve 8-10% growth in the second half of FY26, supported by upcoming model launches, strong SUV sales and growing demand for electric and CNG vehicles, which now account for 45% of passenger car revenue. Although the September cyberattack temporarily affected JLR’s production, analysts said the impact on retail was minimal and recovery is underway.(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)