102645 Investors following Tata Motors. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Tata Motors: Edelweiss Research
Broking house, Edelweiss Research is bullish on Tata Motors and has maintained buy rating on the stock with a earnings growth of 29% p.a. for the next two years.
Broking house, Edelweiss Research is bullish on Tata Motors and has maintained buy rating on the stock with a earnings growth of 29% p.a. for the next two years.
Edelweiss Research report on Tata Motors:
"Tata Motors announced Q2FY07 results which were below our expectations. Net profit increased by 31% to Rs 4.4 billion. Despite a robust demand environment, and increase in average realizations by 5.6% YoY, EBITDA margins at 11.5% took a hit of 50 bps (without adjusting for forex loss/gain, primarily because of continued pressure on material costs and some one-time costs (Rs 450 million) related to employees and plant maintenance."
"Based on a stronger volume outlook for commercial vehicles for the second half and lower than previously estimated margins, we are revising our estimates for Tata Motors' consolidated EPS upwards by 5.9% and 6.6% for FY07 and FY08. Our revised volume estimates for M&HCVs for FY07 imply a still conservative 12% growth required for the second half."
"At 14.8 FY07E and 12.3x FY08E revised estimates, the stock continues to look attractive in relation to the estimated earnings growth of 29% p.a. for the next two years. We maintain our 'BUY' on the stock."
