Tata Motors CV Listing: A Strong Value Unlock Story

Jahol Prajapati, Research analyst, SAMCO Securities

Tata Motors' Commercial Vehicle (CV) division, Tata Motors Ltd Commercial Vehicle (TMLCV) will list as a separate company on Wednesday, November 12, 2025, and it will be a major step in unlocking long-term value. The demerger separates the fast-growing passenger vehicle and EV business from the more stable, cash-generating CV business, allowing investors to value each on its own strength. Shareholders will get one share of TML CV for every Tata Motors share held, so there's no dilution of ownership.

The CV arm is at the heart of India's growth story - supporting logistics, mining, and infrastructure expansion. With freight activity improving, commodity costs easing, and the GST rate cut from 28% to 18%, demand for commercial vehicles is expected to rise sharply. Fleet replacement and new demand from construction and logistics players will add further momentum.

Financially, the business reported FY25 revenue of ₹75,055 crore and EBITDA of ₹8,856 crore, implying a healthy 11.8% margin. Using Ashok Leyland's EV/EBITDA multiple of 12.9x, the fair value for TML CV comes around ₹1.14 lakh crore, or roughly ₹310-₹320 per share.

Verdict: The listing removes the "conglomerate discount" and gives investors a focused bet on India's commercial vehicle upcycle - a steady, cash-rich, value-driven play backed by improving policy and economic tailwinds.

Source : Equity Bulls

Keywords

TataMotors CommercialVehicleDivision TMLCV Listing ValueUnlocking