February 14, 2017 / 18:33 IST
3QFY17 volumes increased 2% YoY (+7% QoQ), driven by growth of 22% YoY (+24% QoQ) in Tractors but 8% YoY decline in automobile sales. Realizations declined 2.5% QoQ (-1% YoY) to INR 536k (est. of INR 530k). Net revenues grew 16% YoY to INR 101.7b (in-line).
Outlook
We downgrade EPS estimates by 5-8% for FY17/18, to factor in for higher tax rate. The stock trades at 17.1x/14.3x FY18/FY19 consol EPS. Maintain Buy rating with a SOTP based TP of INR 1,506 (FY19 SOTP based).
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