Axis Securities's research report on Tata MotorsTata Motors' (TTMT) consolidated EBITDA was broadly inline with our/consensus est. with JLR EBITDA margin at 14.4% beating our est. of 14.1% (Street was 14.5%) and standalone margin at 4.6% missing our est of 5%. We were happy with JLR margin considering it was impacted by a GBP 87 mn loss on revaluation of forex and commodity hedges.TTMT stock continues to offer best risk-reward in the sector with its favorable product cycle and scope for recovery in FY17-18. Our EBITDA estimates are unchanged, but higher than expected depreciation and interest has resulted in an FY17 PAT cut of ~10%. Given the recent crack in global luxury car stocks, we have further reduced our adj FY17 EBITDA multiple on JLR from 3.5x to 3.25x (BMW at ~4x). Our TP of Rs 442/sh still provides a 60% upside and hence we reiterate BUY.For all recommendations, click here 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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