Shares of Tata Motors Commercial Vehicles Ltd (TMLCV), the newly demerged commercial vehicle arm of Tata Motors, made a robust debut on Wednesday, listing at a premium of over 26%–28% to its implied value.. The stock opened at Rs 335 on the NSE, up 28.5% from the implied value of Rs 260.75 and at Rs 330.25 on the BSE, a 26.6% gain. Post listing, it rose further to Rs 345 on the NSE, reflecting solid investor enthusiasm for India’s largest truck and bus maker.

Why investors are upbeat

Analysts cited optimism about India’s commercial vehicle upcycle and infrastructure growth as key drivers. Jahol Prajapati, research analyst at Samco Securities, was quoted by ET as saying that 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.” He noted that shareholders will get one share of TMLCV for every Tata Motors share held, with no dilution of ownership.According to ET, TMLCV reported FY25 revenue of Rs 75,055 crore and EBITDA of Rs 8,856 crore, implying an 11.8% margin. Prajapati added, “Using Ashok Leyland’s EV/EBITDA multiple of 12.9x, the fair value for TMLCV comes around Rs 1.14 lakh crore, or roughly Rs 310–Rs 320 per share.” He said the listing “removes the conglomerate discount and gives investors a focused bet on India’s commercial vehicle upcycle.”

Analysts’ view: Buy, sell, or hold?

Brokerages remain broadly positive but advise caution on near-term volatility. Ambit Institutional Equities called the demerger “a separation of value and growth propositions,” stating that “the CV business is better positioned to capitalise on the demerger” and could see “immediate value unlocking.”SBI Securities values the CV arm between Rs 320 and Rs 470 per share.Harshal Dasani, business head at INVasset PMS, said, “For investors, this listing presents a dual-edged opportunity — a sharp, India-centric commercial vehicle play aligned with freight and infrastructure growth, but also early-stage listing risks and cyclicality in margins.” He recommended that long-term investors “hold the stock in a medium-term portfolio with a three-to-five-year horizon.”

Iveco acquisition adds global potential

According to ET, analysts see Tata Motors’ pending acquisition of Italy’s Iveco Group NV’s commercial vehicle operations for €3.8 billion as a transformative step. Dasani said, “The Iveco acquisition adds technological heft but will take time to reflect in earnings,” calling it a “long-term strategic catalyst” that could make TMLCV a global contender in medium and heavy commercial vehicles.In the near term, analysts expect some volatility as funds rebalance post-demerger but believe that GDP-linked demand recovery, infrastructure expansion, and emission-led upgrades will gradually support the stock’s trajectory.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)