Markets

Broker's call: Tata Motors (Buy)

| Updated on December 12, 2019

Motilal Oswal

Tata Motors (Buy)

CMP: ₹173.35

Target: ₹195

JLR’s wholesale volumes declined marginally by 2.4 per cent y-o-y to about 48,100 units (our estimate: about 45.5k) in November 2019.

Jaguar volumes declined about 29 per cent y-o-y to about 10,800 units (our estimate: 12,500), whereas Land Rover (LR) volumes increased about 9 per cent y-o-y to about 37,300 units (our estimate: 33,000).

JLR’s retail volumes declined 3.4 per cent y-o-y in November 2019 as the recovery in China (+29 per cent) and North America (about +5 per cent) was offset by the fall in the UK (about -11 per cent), Europe (about -17 per cent) and RoW (about -17 per cent). China witnessed the fifth consecutive month of a recovery in volumes.

Jaguar’s retail volumes declined about 23 per cent y-o-y in November 2019.

LR’s retail volumes were up 5.5 per cent y-o-y, driven by higher sales of new RR Evoque (about +25 per cent), new LR Discovery Sports (+4.4 per cent), LR Discovery (+15.5 per cent) and RR Sport (about +5 per cent).

The stock trades at 13.7x FY21E consolidated EPS and 0.8x P/B. Maintain ‘Buy’ with a target price of ₹195 (September 2021 SOTP-based).

Published on December 13, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor