INSUBCONTINENT EXCLUSIVE:
Shares of Tata Motors were over 2 per cent higher early Wednesday after the company reported a 6 per cent rise in global sales last
month.
The figure stood at 1,23,577 units, including those of Jaguar Land Rover (JLR)
The company had sold 1,16,419 units in September 2017.
The scrip was 2.09 per cent up at Rs 188.10 at around 9.30 am while the benchmark
Sensex rose 146 points, or 0.41 per cent, to 34,441 at around the same time
On Tuesday, shares of the company cracked 13.40 per cent to end at Rs 184.25 on the BSE
with a target price of Rs 200 for an investment horizon of 12 months
stressing its balance sheet
This is likely to result in muted return ratios with RoCE of less than 10 per cent
Going forward, revising our estimates, on a consolidated basis, we expect sales to grow at a CAGR of 5.9 per cent over FY18-20E
only saviour for Tata Motors is the uptrending domestic segment where the company is witnessing robust prospects both in the MHCV space as
has broken its swing low of last time and given a close below this level, which is negative
company's global sales of all the passenger vehicles came in at 71,559 units, down 4 per cent from 74,916 units in September 2017.
Global
sales of JLR accounted for 52,987 units
Jaguar wholesale units for the month were at 18,876 vehicles while Land Rover wholesale stood at 34,111 vehicles.
JLR had sold a total of
57,365 units in September 2017.
Motilal Oswal Finacial Services is bullish on Tata Motors with a target price of Rs 335, indicating an
upside of 80 per cent against the previous closing price
and views on domestic CV and PV demand, it stated.
