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Last Updated : Dec 06, 2016 07:08 PM IST | Source: Moneycontrol.com

JLR UK Nov sales fall 6%; CLSA cuts EPS, target of Tata Motors

CLSA has maintained its buy call on Tata Motors due to attractive valuations after recent correction, but slashed target price to Rs 585 (from Rs 635 earlier) following cut in earnings per share estimates.

 
 
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Moneycontrol Bureau


CLSA has maintained its buy call on Tata Motors due to attractive valuations after recent correction, but slashed target price to Rs 585 (from Rs 635 earlier) following cut in earnings per share estimates.


The brokerage house has reduced its FY17-18 EPS by 16-37 percent but expects a strong 53 percent EPS CAGR over FY17-19 period.

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It feels JLR (Jaguar Land Rover) business should deliver strong mid-teens volume growth over FY18-19 and India business should turn profitable only by FY19.


The stock fell nearly 19 percent from the closing level of Rs 540.20 on November 8, especially after the Prime Minister Narendra Modi announced a ban on legal tender of Rs 500 and Rs 1,000 notes with immediate effect.


Meanwhile, JLR sales performance was tepid in the UK as it declined nearly 6 percent in the month gone by.


The luxury car maker sold 8,183 units in November, lower by 5.7 percent compared with 8,675 units sold in the year-ago quarter due to fall in Land Rover sales.


Jaguar brand sustained its growth, showing a whopping 35.7 percent growth year-on-year at 2,905 units while Land Rover UK sales fell 19.2 percent to 5,278 units.

At 11:47 hours IST, the stock was quoting at Rs 442.70, up Rs 3.10, or 0.71 percent on the BSE.

First Published on Dec 6, 2016 12:18 pm
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