Angel Broking has recommended to book profit in Tata Motors at Rs 574 in its report. The share closed at Rs 562.10, up Rs 14.35, or 2.62%.

"Tata Motors (TML) reported 12.7% YoY and 24.5% QoQ rise in operating revenues to Rs 7,978.8 crore far ahead of our expectation of Rs 6,787.9 crore led by 17.4% rise in volumes and price hike taken by company on commercial vehicles (CVs). Lower raw material to sales ratio on account of softening of steel prices, aided substantial improvement in EBITDA margins to 13.2% (8% in Q2FY09 and 11.2% in Q1FY10). Rise in EBITDA margins and one time gain from stake sale in Tata Steel to the tune of Rs 370 crore have doubled the net profit to Rs 729.1 crore as against Rs 347 crore in Q2FY09 and Rs 513.4 crore in Q1FY10. We have valued the company on SOTP basis to arrive at our target price of Rs 560 which the major concern on profit growth is the  losses from its subsidiaries mainly JLR. We recommended book profit at Rs 574 levels. At CMP of Rs 539, the stock is trading at 10.6x and 9.2x its standalone FY10E and FY11E EPS, "says Angel Broking research report.
                                            
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