Motilal Oswal's research report on Tata Motors
Jaguar Land Rover (JLR) 4QFY21 wholesale volumes (incl. CJLR) grew ~7.5% YoY to ~136.5k units. Jaguar wholesales declined ~3.4%, while LR grew ~11.3%. JLR sales saw significant improvement sequentially (+14% QoQ). This has led to dilution in the mix as the share of Jaguar has improved ~5.4pp QoQ. The sharp beat in quarterly wholesales would lead to a stronger-than-estimated 4QFY21 performance. Based on our volume estimates for JLR, we expect TTMT's 4QFY21 consol PAT at INR36.4b. With actual wholesale volumes, the revised 4QFY21 consol PAT estimate is INR51.3b. For FY21, JLR wholesale volumes declined 21% to 124.8k units. For the full year, Jaguar/LR wholesales declined 37%/15%.
Outlook
The stock trades at 7.9x FY23E consol. EPS and 1.5x P/B. Maintain Buy, with Target Price of INR415 (Mar’23 SOTP-based).
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