Tata Motors-owned Jaguar Land Rover (JLR) today reported its best-ever annual retail sales of 6,04,009 units in the financial year ended March 31, 2017, up 16 per cent from the year-ago period.
Benefits of significant pound depreciation will flow through into JLR's margin that may improve to 16 percent by FY19 from 10.3 percent in Q2FY17, CLSA feels.
Britain's biggest carmaker Jaguar Land Rover (JLR) sold a record 583,312 cars last year as the Indian-owned firm continues its rapid expansion with the aim of building 1 million vehicles a year at the turn of the decade.
The all-new Jaguar F-PACE will be launched in India on October 20 this year. Customers can now book it online or through any of the 23 authorised Jaguar retailers located near them, Jaguar Land Rover India said in a statement.
With raising target price to Rs 665 (from Rs 530), Citi said it felt a combination of improving model cycle plus weak British pound should benefit JLR's margins and improve free cash flow generation over medium term.
In an interview to CNBC-TV18's Sonia Shenoy, Latha Venkatesh and Anuj Singhal, Prakash Diwan of prakashdiwan.in spoke about the fundamentals of the market, specific stocks and sectors.
JLR's US sales in August grew by 46 percent to 9,329 vehicles compared with year-ago period, driven largely by Jaguar's recently launched F-PACE and XE.
Tata Motors shares gained 2 percent on account of better-than-expected consolidated revenue growth & standalone operational performance, and improvement in JLR business.
Tata Motors-owned Jaguar Land Rover today reported 34 per cent jump in retail sales in July at 44,486 units.
JLR, the UK's leading manufacturer of premium luxury vehicles, reported its July retail sales of 44,486 vehicles, up 34 percent compared to July 2015, which was driven by strong sales of the Land Rover Discovery Sport, the Jaguar XE and the F-PACE.
JP Morgan is overweight on the stock with a target price of Rs 485 on a recovering economic environment in India and believes JLR will continue to benefit from new model launches in the near term – particularly at Jaguar.
Tata Motors-owned Jaguar Land Rover today reported 22 percent jump in global retail sales to a record 2,91,556 units in the first half this year riding on robust demand in Europe and the UK.
Brokerages have maintained their overweight rating on the stock after JLR retail sales data, saying F-Pace will be key driver for overall sales growth in FY17 along with other new launches and China growth is likely to be aided by Discovery Sport & XF.
After JLR's May sales data, Macquarie, which has target of Rs 535 on the stock, says Tata Motors is its top pick in the India auto sector and is a Macquarie Marquee stock while JP Morgan has price target of Rs 485, which says Tata Motors' India business is benefitting from an improving macro environment.
"The ratings reflect our expectation that JLR Automotive Plc will continue to maintain sound profitability and a strong financial profile, despite a period of heavy investment to become a higher-volume premium manufacturer," Fitch Ratings said in a statement issued from Singapore.
Deutsche Bank believes that the impact on margins (down 290 basis points by FY18) and free cash flow will be stronger than earlier anticipated. Hence it cut earnings per share forecasts by 17-23 percent and target price by 21 percent to Rs 375.
British car maker Jaguar, known for its sporty sedans, will launch the F-PACE offroader in 2016, entering the ultra popular segment of the luxury sports utility vehicle in a radical departure for the 80-year-old brand.