Tata Motors share price was up over 2 percent in the morning session on November 25 after CLSA maintained buy call on the stock.
The global research firm has retained buy call on the stock with target at Rs 220 per share. CLSA believes that the company had a good start to Q3 with JLR volume recovery continuing, driven by China. Estimated JLR’s overall retail sales decline moderated to 4 percent YoY in October, it said, according to a CNBC-TV18 report.
CLSA is of the view that improvement in JLR is mainly driven by China and US, while UK and EU were weak. QoQ volume recovery coupled with cost cuts should drive deleveraging for the company. Risks include a sudden slowdown in its recovery trajectory and no-deal Brexit, the research firm added.
The stock was trading at Rs 175.65, up Rs 3.65, or 2.12 percent at 09:39 hours. It has touched an intraday high of Rs 176.85 and an intraday low of Rs 174.20.
The company's consolidated revenue fell 18.2 percent year-on-year to Rs 53,530 crore in Q2FY21 due to a decline in commercial vehicle (CV) and Jaguar Land Rover (JLR) volumes.
Revenue from passenger vehicle (PV) segment increased 86.3 percent YoY, with the achievement of EBITDA breakeven in Q2.
Goldman Sachs has maintained a 'sell' call on the stock, with a target at Rs 108. Citi has kept a 'buy' rating with a target at Rs 185. According to Citi, the Q2 was ahead of estimates.
Motilal Oswal is of the view that the company would will the triple benefit of a) macro recovery, b) company-specific volume/margin drivers and c) a sharp improvement in FCF and leverage in both JLR as well as India business.
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