Buy Tata Motors; target Rs 347: Angel Broking
Brokerage house Angel Broking is bullish on Tata Motors and has recommended 'Buy' rating on the stock with a price target of Rs 347 in its research report dated July 16, 2013.
July 19, 2013 / 11:16 IST
Angel Broking's report on Tata Motors
Global luxury carmakers continued to report a healthy volume growth, aided by strong growth in the Asia/Pacific and North America regions.Audi registered a 5.4 percent yoy growth led by a 33.5 percent and 14.3 percent yoy growth in China and United Kingdom respectively. However, the company continued to witness a challenging environment in Europe due to the prevailing difficult economic environment in the region. Audi stated that the demand for its mid-sized model lines - A4, A5 and Q5 - continue to remain strong.BMW sales grew strongly by 9.4 percent yoy despite the prevailing headwinds in some European markets. The growth was aided by continued momentum in 3, X1 and X3 series models and also due to strong demand from China and North America.Mercedes-Benz reported a 8.3 percent yoy growth, driven by strong offtake in the Asia/Pacific (up 19.2 percent yoy) and North America (up 9.8 percent yoy) regions. The growth continues to be driven by the success of the recently launched compact and SUV models.Outlook and valuation: "we retain our positive view on JLR and expect an ~13 percent volume CAGR over FY2013-15E driven by continued momentum in the luxury vehicle market, coupled with strong performance expected of the product launches that are lined up in FY2014 (the company is expected to launch 8 new refreshes/models in FY2014), and the success of the models launched in 4QFY2013. We maintain our Buy rating on the stock with a sum-of-the-parts (SOTP) target price of Rs 347," says Angel Broking research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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