The Tata Group stocks are in focus after the Tata Sons chairman N Chandrasekaran announced his decision to not seek reappointment after his current term ends in February 2027. This has put succession at the Tata Group back in focus. Against this backdrop, Jefferies is taking a stock-specific approach rather than treating the leadership change as a reason to turn cautious across the group.
The brokerage says, “Looking through the potential near-term market concerns related to leadership change, we believe business fundamentals will prevail,” and has retained four stocks as its preferred Tata names.
Jefferies’ preferred list includes four ‘Buy’ calls, with its highest target-price upside at 37%, while two stocks carry ‘Hold’ ratings and three are rated ‘Underperform’. The brokerage’s choices are driven by individual business factors including hotel demand, consumer growth, steel prices, air-conditioner volumes, valuation, and company-specific execution risks rather than the Tata Sons transition alone.
Jefferies on Indian Hotels: ‘Buy’
Jefferies has a ‘Buy’ rating on Indian Hotels Company Ltd. with a target price of Rs 875, implying 21% upside. The brokerage expects the company to benefit from healthy domestic hotel demand, continued room additions through an asset-light model and the scaling of newer businesses. Indian Hotels plans to open more than 60 hotels during the year, with most additions expected to follow the asset-light model.
The company’s hotel pipeline stands at around 31,000 rooms, with 68% of the operating portfolio and 93% of the pipeline under asset-light models. Jefferies expects management fee income to grow at a high-teens rate and sees the Ginger business entering an important growth phase. The brokerage expects earnings before interest, taxes, depreciation and amortisation to grow at a 15% compound annual growth rate between financial year 2026 and financial year 2029.
Jefferies values Indian Hotels at 28 times September 2028 earnings before interest, taxes, depreciation and amortisation. It also expects the company to invest more than US$700 million over the next four to five years in new developments, renovations and technology upgrades, funded through internal accruals.
Jefferies on Tata Consumer Products: ‘Buy’
Tata Consumer Products has the highest upside among Jefferies’ preferred Tata Group stocks. The brokerage has a ‘Buy’ rating and a target price of Rs 1,450, implying 37% upside. Jefferies sees the company as relatively less exposed to crude-linked input costs compared with peers, while India remains its core source of stable growth.
“Tata Consumer Products is uniquely positioned, with limited dependence on crude-inked inputs vs peers,” Jefferies said.
The brokerage expects Tata Consumer Products’ earnings before interest, taxes, depreciation and amortisation to grow at a 14% compound annual growth rate between financial year 2026 and financial year 2029, with margin expansion supported by the company’s growth portfolio and international operations. Jefferies also expects pre-exceptional profit after tax to grow at a 20% compound annual growth rate over the same period.
Jefferies on Tata Steel: ‘Buy’
Jefferies has a ‘Buy’ rating on Tata Steel with a target price of Rs 240, implying 29% upside. The brokerage expects Tata Steel to benefit from a potential recovery in Indian steel prices and an improvement in Asian steel spreads.
Indian flat steel prices are expected to rise to Rs 58,000 per tonne in financial year 2027 and Rs 61,000 per tonne in financial year 2028, according to Jefferies. The brokerage expects Tata Steel’s India steel volumes to grow 9% in financial year 2027, supported by recently commissioned capacity in Odisha and a new 0.75 million tonne electric arc furnace.
“Tata is a key beneficiary of a potential recovery in India steel prices,” Jefferies said.
Jefferies values Tata Steel at 6.7 times estimated financial year 2027 enterprise value to earnings before interest, taxes, depreciation and amortisation, compared with its 10-year average of 6.4 times. The brokerage expects the next major 5 million tonne capacity addition at NINL to start only in the financial year 2031.
Jefferies on Voltas: ‘Buy’
Jefferies has a ‘Buy’ rating on Voltas with a target price of Rs 1,530, implying 19% upside. The brokerage sees strong room air-conditioner volumes, capacity expansion and improving performance in Voltas-Beko supporting the company’s earnings outlook.
Voltas sold more than 1 million room air-conditioners during the June 2026 quarter, compared with around 2.3 million units during the whole of financial year 2026. Chennai capacity increased from 1 million units to 1.5 million units, with plans to take it to 2 million units after two years.
Jefferies expects sales and profit after tax to grow at compound annual growth rates of 15% and 21%, respectively, between financial year 2027 and financial year 2029. The brokerage uses a target price-to-earnings multiple of 45 times, in line with the five-year historical average.
Jefferies on Titan: ‘Hold’
Jefferies has a ‘Hold’ rating on Titan with a target price of Rs 5,000, implying 2% downside. The brokerage continues to see strong growth visibility, supported by jewellery market-share gains, premiumisation and expansion of adjacent businesses, but believes valuation limits the potential return.
“While growth visibility remains strong, rich valuations limit upside,” Jefferies said.
Jefferies expects Titan’s revenue to grow at a 16% compound annual growth rate between financial year 2026 and financial year 2029, while earnings before interest, taxes, depreciation and amortisation and profit after tax are expected to grow at 21% compound annual growth rates. Titan trades at 75 times one-year forward price-to-earnings against a 10-year average of 60 times.
Jefferies on Trent: ‘Hold’
Jefferies has a ‘Hold’ rating on Trent with a target price of Rs 3,435, implying 13% upside. The brokerage says growth has moderated because of a high base, weaker demand and rising competition, although margins have remained strong.
Jefferies expects standalone revenue to grow at a 22% compound annual growth rate and earnings before interest, taxes, depreciation and amortisation at a 24% compound annual growth rate between financial year 2026 and financial year 2029. The brokerage remains cautious until there is a visible improvement in growth.
Jefferies on Tata Consultancy Services: ‘Underperform’
Jefferies has an ‘Underperform’ rating on Tata Consultancy Services with a target price of Rs 1,800, implying 23% downside. The brokerage expects muted medium-term growth and points to artificial intelligence-led revenue deflation risks, weak deal bookings and limited scope for margin expansion.
Jefferies expects constant-currency revenue and earnings per share to grow at compound annual growth rates of 4% and 5%, respectively, between financial year 2026 and financial year 2029. It also expects weaker free cash flow conversion to weigh on price-to-earnings valuations and values the company at 11 times earnings.
Jefferies on Tata Motors Passenger Vehicles: ‘Underperform’
Jefferies has an ‘Underperform’ rating on Tata Motors Passenger Vehicles with a target price of Rs 300, implying 12% downside. The brokerage remains concerned about Jaguar Land Rover, citing increased competition, high discounts and warranty costs, elevated capitalised work in progress and ageing key models.
The India passenger vehicle business is performing better, but Jefferies does not expect it to fully offset the pressure from Jaguar Land Rover. The brokerage values Jaguar Land Rover at 2 times estimated financial year 2028 enterprise value to earnings before interest, taxes, depreciation and amortisation and India’s passenger vehicle business at 11 times the same metric.
Jefferies on Tata Power: ‘Underperform’
Jefferies has an ‘Underperform’ rating on Tata Power Company Ltd. with a target price of Rs 355, implying 6% downside. The brokerage remains cautious because of execution delays and issues surrounding the Mundra power plant.
Tata Power’s revenue mix includes transmission and distribution, renewable energy and thermal and hydro generation. Management targets revenue of Rs 1 lakh crore, reported earnings before interest, taxes, depreciation and amortisation of Rs 30,000 crore and reported profit after tax of Rs 10,000 crore by financial year 2030.
The company also plans Rs 10,000 crore of transmission and distribution capital expenditure over the next five years. Jefferies, however, remains cautious on execution and Mundra-related issues.
Jefferies Tata Group strategy
Jefferies’ preferred Tata Group stocks are Indian Hotels, Tata Consumer Products, Tata Steel and Voltas. Among these, Tata Consumer Products carries the highest implied upside at 37%, followed by Tata Steel at 29%, Indian Hotels at 21% and Voltas at 19%.
Titan and Trent remain ‘Hold’ calls despite their longer-term growth prospects. Jefferies’ more negative ratings are on Tata Consultancy Services, Tata Motors Passenger Vehicles and Tata Power, where the brokerage sees concerns around growth, artificial intelligence-related disruption, Jaguar Land Rover and execution.
| Stock | Rating | Target price | Upside / downside |
| Tata Consumer Products | ‘Buy’ | Rs 1,450 | 37% upside |
| Tata Steel | ‘Buy’ | Rs 240 | 29% upside |
| Indian Hotels | ‘Buy’ | Rs 875 | 21% upside |
| Voltas | ‘Buy’ | Rs 1,530 | 19% upside |
| Trent | ‘Hold’ | Rs 3,435 | 13% upside |
| Titan | ‘Hold’ | Rs 5,000 | 2% downside |
| Tata Power | ‘Underperform’ | Rs 355 | 6% downside |
| Tata Motors Passenger Vehicles | ‘Underperform’ | Rs 300 | 12% downside |
| Tata Consultancy Services | ‘Underperform’ | Rs 1,800 | 23% downside |
Conclusion
The brokerage believes that the Tata Sons leadership transition should not be viewed in isolation. Jefferies expects the underlying performance of individual businesses, along with their growth prospects and valuations, to remain the key factors driving its stock preferences.
Disclaimer: This article contains ratings, target prices, estimates, valuation views and forward-looking statements from Jefferies research. Such estimates and targets can change and may not materialise. The information is provided for news and informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy, sell or hold any security. Readers should conduct their own research and consult a SEBI-registered financial adviser before making investment decisions.