Tata Motors has target of Rs 340: Hitesh Goel

Tata Motors has target of Rs 340, says Hitesh Goel, Auto Analyst, Kotak Institutional Equities.

Goel told CNBC-TV18, "On Tata Motors we have a target price Rs 340. We are very positive on this stock. If you look at the current results, if you look at the EBITDA level on consolidated level it was mostly in line with the street expectations. JLR margins held up very well despite a quarter where they had to phase out the old Range Rover, where significant discounts were given. So going forward, in the fourth quarter you will see the full ramp up of the new models especially the new Range Rover where there is a three-six months waiting across markets.”
He further added, “You will see margins going up from here on JLR front. We are looking at a 20 percent sales growth for JLR next year in FY14 driven by 16 percent volume growth and EBITDA margin expansion of 150 basis points from current levels. So basically we are very positive.”
“We believe that the market is unduly worried about near term performance but that was due to transitioning to a new model product cycle. There are a lot of model launches coming through, which augers well for JLR."