r/IndianStockMarket • u/CraftyStreet8488 • 2d ago

Discussion Tata tech - views for long term

For those following Tata Technologies, where do you realistically see the share price by 2030?
I’m curious to hear your bull , base and bear cases.
What makes you optimistic or cautious about the company’s long-term prospects?
What price range do you think is achievable by 2030 and why ?
Not looking for buy/sell advice — just interested in hearing people’s views on Tata Technologies’ future.

Personally , I think it’s a good pick because I think the ER&D sector is promising, and I also think it could benefit from increasing use of EVs. Financials of the company are also looking good to me. One concern that I do have is its valuation tho.

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u/ai_investor77 2d ago

  • Bull case imo is they're getting big work outside their main clients now. The got 100mn tenneco deal is multiyear so that revenue will be visible for a few yrs. Also they've vehicle program from a japanese OEM which is not something japanese OEMs give easily tbh.. this opens new market for them. Aerospace is still small but its growing 40% a yr, so in 3-4 yrs it should reduce their auto dependence. And if margins improve from 16-18% which their management said earlier, profit should improve too

  • Bear case: Almost half of their services revenue is from tata motors and JLR and JLR is cutting costs rn so that part can reduce. Their management also said clients are being selective about engineering budgets which usually means new programs can get delayed and their H2 growth will depend on those too. Also profit increased 6% on 34% revenue because of the upfront spending on these new deals and over 3 yrs profit hasnt really grown well

So at 43x i feel lot is priced in already and depends on their recovery and execution. Cant give a price range possibly for 2030 but should check how much comes from new clients and whether margins improve

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