Buy Tata Motors; target of Rs 653: Motilal Oswal

Motilal Oswal is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 653 in its research report dated March 02, 2017.

March 06, 2017 / 12:37 IST

26 Aug, 2025 12:21

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Motilal Oswal's report on Tata Motors

After 2 years of turbulence for TTMT, we believe worst is behind and things are falling in place for both JLR (favorable product pipeline, favorable Fx movement and peaking capex) and India business (several levers for CV recovery and strong pipeline for PVs).

Outlook

We estimate 134% consolidated EPS CAGR over FY17-19 (albeit on a low base, after 46% CAGR decline over FY15-17E). The stock trades at 12.7x/6.5x FY18E/FY19E consolidated EPS. We maintain Buy with a target price of INR653 (FY19E SOTP based). We value JLR at 3.5x EV/EBITDA and the Indian business at 8x EV/EBITDA. TTMT is one of our top picks in Autos.

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first published: Mar 6, 2017 12:37 pm

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