Motilal Oswal's research report on TATA Motors
Tata Motors (TTMT) saw continued volume recovery in both businesses in 3QFY21. In addition to this factor, the benefit of the mix at JLR, certain favorable reversals at Jaguar Land Rover (JLR), and cost-cutting initiatives came together to deliver good all-round performance and QoQ debt reduction. Continued mix improvement in JLR and India, along with overall tight cost/capex control, would drive sharp improvement in operating performance and debt reduction. n We upgrade our FY22E consol EBITDA by 7% (EPS upgrade of 36%), factoring in a) cost-cutting in JLR, b) volume upgrades in India PV and CV, and c) volume cuts in JLR. Maintain Buy, with TP of INR350 (Mar’23 SOTP)
Outlook
The stock trades at 3.4x FY22 EV/EBITDA and 1.4x P/BV. Maintain Buy, with TP of ~INR350 (Mar’23-based SOTP).
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