INSUBCONTINENT EXCLUSIVE:
Motilal Oswal Securities has a buy call on Tata Motors with a target price of Rs 459.
The current market price of Tata Motors is Rs
269.30.
Time period given by the analyst is one year when Tata Motors price can reach the defined target.
JLR’s wholesale volumes declined
24 per cent YoY (-20.5 per cent MoM) to 37.5k units (est
of 50k units; includes China JV volume of 7.6k units) in June 2018.
Jaguar volumes declined 16.9 per cent YoY to 10.4k units (est
of 15.5k units), while Land Rover volumes fell 26.6 per cent YoY to 27.1k units (est
of 34.5k units).
JLR’s retail volumes increased 0.9 per cent YoY (+7.8 per cent MoM) to 52k units, as Jaguar retails grew 6.4 per cent YoY
(+12.6 per cent MoM) to 16.3k units, while LR retails declined 1.5 per cent YoY (+5.8 per cent MoM) to 35.7k units.
Growth in Jaguar volume
was led by E-pace (4.5k units), while volumes of other models like XF, F-Pace and XE declined 20.2 per cent, 30.8 per cent and 12.5 per cent
YoY, respectively.
LR’s retail volumes fell 1.5 per cent YoY to 35.7k due to a decline in most models, barring Velar (5.4k units) and RR
Sport (+2.2 per cent YoY).
Region-wise, sales in the UK and the US grew 0.9 per cent and 7.4 per cent YoY, respectively
However, in China, sales declined 9.5 per cent, as the reduction in import duties on passenger vehicles in China from 1st July continued to
result in deferred purchases
In Europe, too, sales declined by 3.8 per cent.
Mr Felix Brautigam, Jaguar Land Rover Chief Commercial Officer said, “We have seen a
positive month for Jaguar ahead of the start of customer deliveries of our Jaguar I-PACE, the car at the forefront of our electric vehicle
Strong retails of the sporty and compact SUV Jaguar E-PACE in Europe, the UK and our Overseas region are driving sales performance for the
brand, which is up over 6 per cent for the month.”
On decline in retail sales in China he said “Land Rover sales declined slightly in
June as China waited for the welcome reduction in import tariffs as of July
This was largely offset by increases in sales in UK, USA and our Overseas region
The award-winning Range Rover Velar continues to make its mark across all regions
Its combination of elegant design and refined capability successfully translates into growing global sales.”
The stock trades at 6.9/6.1x
FY19E/20E consolidated EPS
Maintain Buy with a target price of Rs 459 (Mar-20 SOTP-based).
