Motilal Oswal has initiated coverage on Tata Capital with a 'Neutral' rating and a target price of Rs 390, valuing the stock at 2.7x its estimated March 2028 price-to-book value (P/BV). The target implies an 8% upside from the current market price of Rs 361.
The brokerage said a meaningful re-rating would require sustained improvement in return on assets (RoA) and return on equity (RoE), supported by continued expansion in higher-yielding retail lending segments.
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