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Fundamental

Tata Motors: EV Outperformance Moat Analysis

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Published: July 12, 2026 | Author: Pooja Patel
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Tata Motors EV Moat Analysis.pdf
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CHROMA RESEARCH

CHROMA RESEARCH

EQUITY RESEARCH UPDATE
Date: July 12, 2026
Analyst: Pooja Patel

Tata Motors: EV Outperformance Moat Analysis

EXECUTIVE SUMMARY: Tata Motors holds a leading 70%+ market share in India's Passenger Electric Vehicle segment. This analysis covers the margin trajectory driven by direct localization of battery packs and drive units, leading to projected EBITDA improvement by 240bps.

KEY OBSERVATION 1 (Forensic Margins): The separation of the EV business into Tata Passenger Electric Mobility (TPEM) allows streamlined capital structures. Net debt in the domestic business has hit structural zeros. Operating cash flows support continuous capacity expansion in Sanand plant.

VALUATION BENCHMARK: Trading at 18.5x FY28 EPS estimates, which represents a 15% discount to its peak multiples. We recommend accumulating on drops.

TPEM CAGR Projections