US-Iran peace deal may fuel CV sector growth: Kotak Equities upgrades Tata Motors, Ashok Leyland

Kotak Institutional Equities upgraded Tata Motors to Buy from Add with a target price raised to Rs.450 from Rs.430, and upgraded Ashok Leyland to Add from Reduce with target price unchanged at Rs.170. The upgrade follows a US-Iran peace deal that has pulled crude oil prices lower, easing expectations on diesel prices, which account for 30-50% of fleet operators' total cost of ownership. The brokerage raised FY2027-29 consolidated EBITDA estimates for Tata Motors by 1-5% while expecting M&HCV industry growth to moderate to low single digits in FY2027E due to a high base effect.