Tata Motors
Market price July 6: Rs 1,017
Target price: Rs 1,453
Upside: 42.87%
Brokerage: Shah Investors
Tata Motor standalone business is facing strong headwinds due to macro (India) headwinds such as inflation, rising interest rates and rising fuel prices. It has factored in 11.5% CAGR growth for the CV segment in FY11-13E and 10.3% CAGR growth for the PV segment in FY11-13E. It expects macro concerns to ease out by Q3 and Q4 FY12, and expect standalone business of PV & CV to show recovery. The Company has witnessed slowdown in sales of Indigo and Indica family in Q1 FY12, midsized sedan space, and faces competition from other players. On Subsidiary front, JLR operating performance has improved and has surpassed standalone profitability, driven by improving product mix, cost cutting initiatives and favourable forex movement. It believes JLR has potential to sustain higher profitability and volumes due to growth in China, Russia and launch of Land Rover Evoque. It derive its SOTP (sum of the parts) valuation of Rs.1,453 a share by valuing the standalone business at Rs.710 a share, JLR business at Rs.675 a share and other subsidiary investments at Rs.67 a share. It recommends a BUY with a Target Price Rs.1,453.
More Visit the Blog http://www.bazaaredge.com/blog
Disclaimer : This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. And not soliciting any action based upon it. The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. We or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report
----------------------------------------------
The message was checked by Zillya! Antivirus 1.1.2942.0, bases 2.0.0.696 - No viruses detected
No comments:
Post a Comment