Motilal Oswal is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 246 in its research report dated January 11, 2019.
Motilal Oswal's research report on Tata Motors
JLR’s wholesale volumes declined 17% YoY (-8% MoM) to 45.5k units (our estimate: 50k), including China JV volumes of 5k units (-51% YoY), in Dec’18. Jaguar volumes were down 16% YoY to 14.1k units (our estimate: 15k), while Land Rover volumes declined 17.9% YoY to 31.4k units (our estimate: 35k). JLR’s retail volumes fell 6.4% YoY in Dec’18, led by a 42.4% decline in China retails, partly offset by volume growth in the UK (+7.8% YoY), the US (+21.4% YoY) and EU (+7.6% YoY). Jaguar’s retail volumes grew 7.2% YoY, driven by models like E-pace and I-Pace. Volumes of other models declined substantially.
The stock trades at 8.3x FY20E consolidated EPS, 2.3x EV/EBITDA and 0.6x P/BV. Maintain Buy with a target price of INR246 (Dec’20E SOTP-based).
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