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Last Updated : Jul 13, 2020 10:18 AM IST | Source: Moneycontrol.com

CLSA retains underperform call on Tata Motors; shares up 2%

CLSA is of the view that JLR Q1 wholesale volumes were higher than expected with JLR Q1 global wholesales at 65,400 units against expectation of 54,500 units. It has increased Q1 revenue forecast for JLR by 12 percent.

 
 
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Tata Motors share price jumped over 2 percent intraday on July 13. It was one of the top index gainers and was also one of the most active stocks on NSE in terms of volumes with 2,90,47,189 share being traded.

The stock price jumped over 48 percent in the last 3 months and was trading at Rs 110.55, up Rs 3.00, or 2.79 percent at 09:59 hours. It has touched an intraday high of Rs 112.10 and an intraday low of Rs 108.50.

Global research firm CLSA has, however, maintained an underperform call on the stock with a target at Rs 103 per share. The research firm is of the view that JLR Q1 wholesale volumes were higher than expected with JLR Q1 global wholesales at 65,400 units against an expectation of 54,500 units, according to a report by CNBC-TV18. The firm has increased Q1 revenue forecast for JLR by 12 percent.

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CLSA has reduced JLR Q1 loss forecast from 600 million pound to 527 million pound with consolidated loss cut from Rs 8,800 crore to Rs 8,200 crore.

The UK's largest automotive manufacturer sold 74,067 vehicles in the June quarter and 35,334 vehicles in the month of June.

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During the quarter Jaguar sales declined 52.5 percent YoY to 18,787 vehicles and Land Rover sales fell 37.9 percent to 55,280 vehicles while in June, sales dropped 41.7 percent and 17.1 percent respectively.

The company on June 15 posted a consolidated loss of Rs 9,894.25 crore for the quarter ended March 2020. The consolidated profit for the March quarter FY19 was at Rs 1,117.5 crore and Rs 1,738.3 crore in Q3 FY20.

Consolidated revenue from operations for the quarter stood at Rs 62,492.96 crore, registering a 27.7 percent year-on-year decline, as standalone business fell 48 percent to Rs 9,733 crore and JLR's revenue declined 24 percent to 5,426 million pounds during the quarter YoY.

According to Moneycontrol SWOT Analysis powered by Trendlyne, Tata Motors has been able to generate net cash - improving net cash flow for last 2 years.

Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​
First Published on Jul 13, 2020 10:18 am
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