Brokerage Nuvama estimates the fair value of Tata Motors' PV business at Rs 410 per share and its CV business at Rs 280 per share.
13 Oct 2025 | 8955 Views | By Kiran Murali
Tata Motors’ passenger vehicle (PV) business will start trading as a separate entity from Tuesday, October 14, marking a significant milestone in the company’s restructuring process. On Tuesday, the share price of Tata Motors will be adjusted to take into account the demerger of the commercial vehicles business, through a ...
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Tata Motors’ passenger vehicle (PV) business will start trading as a separate entity from Tuesday, October 14, marking a significant milestone in the company’s restructuring process. On Tuesday, the share price of Tata Motors will be adjusted to take into account the demerger of the commercial vehicles business, through a price discovery mechanism of the stock exchanges.
This follows the implementation of Tata Motors’ scheme of arrangement to demerge its passenger vehicle and commercial vehicle businesses into two independent verticals. Under the new structure, the PV business comprises Jaguar Land Rover, Tata Motors Passenger Vehicle Ltd (TMPVL), Tata Passenger Electric Mobility Ltd (TPEM), and Tata Technologies, while the CV business includes commercial vehicle operations in India and overseas, along with Tata Capital.
With the record date for trading PV business set on Tuesday, both the National Stock Exchange and the Bombay Stock Exchange will hold a special pre-opening trading session between 9 AM and 10 AM IST to allow investors to discover the fair value of the newly listed entity. Eligible shareholders of Tata Motors will be eligible to receive one share of the demerged entity for every one share they own. Shares currently carry a face value of Rs 2 each.
Tata Motors Ltd will remain a listed company but will be renamed Tata Motors Passenger Vehicles Ltd. This entity will handle the passenger vehicle business, which includes its investments in electric vehicles and Jaguar Land Rover. Meanwhile, Tata Motors Commercial Vehicles Ltd will be renamed Tata Motors Ltd. With the PV arm set to begin trading from Monday, the CV business listing is expected to follow within the next 30 to 45 days, completing the separation of the automaker’s key businesses.
Tata Motors shares closed at Rs 660.90 on the BSE on Monday, extending their recent decline. The stock has now fallen by approximately 8% over the past seven trading sessions and has dropped nearly 10.8% so far in 2025.
Brokerage firm Nuvama has estimated the fair value of Tata Motors’ PV business at Rs 410 per share. The valuation includes Rs 176 for the India PV operations, based on a 12x EV/EBITDA multiple; Rs 188 for Jaguar Land Rover, valued at 2x EV/EBITDA; Rs 16 for the JLR China joint venture, based on a 4x multiple; and Rs 33 for Tata Technologies, valued using its current market capitalization after applying a 20% holding company discount.
For the commercial vehicle business, Nuvama has pegged the fair value at Rs 280 per share. This is derived from Rs 264 for the India CV operations, using a 10x EV/EBITDA multiple, and Rs 14 for Tata Capital, based on its current market capitalization with a 20% holding company discount applied.
Meanwhile, the company has also restructured its leadership to ensure the two businesses can operate independently. Girish Wagh has been appointed the Managing Director & CEO of the new commercial vehicle entity, while Shailesh Chandra will lead the PV entity, continuing his role as MD of Tata Passenger Electric Mobility Ltd. Group CFO PB Balaji will take charge as CEO of Jaguar Land Rover.
According to Tata Motors, the split will enable “sharper strategic focus, improved agility, and clearer capital allocation,” allowing each arm to accelerate innovation and respond to changing market dynamics more effectively. For shareholders, the demerger offers the prospect of exposure to two focused businesses and sharper value discovery.
Tata Motors clocked its highest-ever consolidated revenue from operations of Rs 4.38 lakh crore during the previous financial year. JLR is the main revenue contributor, accounting for around 70% of it. The remaining revenue comes primarily from the commercial vehicle business – around 18% – and the India PV business - 12%.
Tata Motors' commercial vehicle business is segmented into eight verticals. This includes four product line businesses - heavy commercial vehicles, intermediate and light/medium commercial vehicles, buses and vans, and small commercial vehicles. The other four are - international business, downstream spare parts and service business, smart city mobility business, and digital business