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
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
(+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
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
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
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
FY19E/20E consolidated EPS
Maintain Buy with a target price of Rs 459 (Mar-20 SOTP-based).
