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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).
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