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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 revolution.
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).
