Tata Motors Ltd. share price target

Tata Motors Limited is an automobile company. The Company is engaged in manufacture of motor vehicles. The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. In the automotive segment, the Company manufactures and sells passenger cars, utility vehicles,...

Tata Motors' Q3 result beats estimates, China retails have come back strongly with growth of 24% YoY against overall decline of 2.3% YoY in JLR retails Tata Motors is engaged in manufacture of motor vehicles. The company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold. Consolidated total income declined 6.83% to Rs 71,676.07 crore in Q3 December 2019 as against Rs 76,264.69 crore in Q3 December 2018. Consolidated profit before tax stood at Rs...

JLR's Q3 EBIT margin at 3.3% was below estimates largely due to forex headwinds.

JLR-centric turnaround plan - Project Charge' was launched in October 2018 and aimed to deliver 2.5 billion of cost, profit and cash improvements by March 2020. Progress on the initiative has been stellar, with the company having over-achieved the target by 400 million three months ahead of schedule. JLR has now embarked on Project Charge+, which targets further 1.1 billion worth improvements in vehicle and market profitability, working capital, overheads and investment by FY21E. Pursuant to strong cost focus, FCF position has strengthened considerably as evidenced by 954, 559,...

31 January 2020 While the operating performance was well below expectations, all key operating matrices showed an improvement. Although TTMT faced impact from FX in JLR and higher discounts to clear inventory in India, we do believe that the structural recovery is in place and part of cyclical factors will ease. We lower our FY21/22 EPS estimate by 11%/3% to factor in the adverse FX We would buy into any weakness in the stock. India M&HCV; business is seeing signs of recovery with improved inquiries for replacement demand from large fleet operators and for tippers. We cut FY21/22E EPS by 11%/3% to factor in adverse FX. Tata Motors JLRs volumes have been under pressure in FY19 due to several headwinds. With several upgrades and refreshes coming over the next 12-18 months, as well as completion of inventory de-stocking, JLRs volumes are expected to stabilize in 2HFY20. We expect JLR's volumes (including JV) to grow at 4.

10 December 2019 Automobiles JLRs wholesale volumes declined marginally by 2.4% YoY to ~48.1k units (our whereas Land Rover (LR) volumes increased ~9% YoY to ~37.3k units (our JLRs retail volumes declined 3.4% YoY in Nov19 as the recovery in China (+29%) and North America (~+5%) was offset by the fall in the UK (~-11%), Europe (~-17%) and RoW (~-17%). China witnessed the fifth consecutive month of a recovery in volumes. Jaguars retail volumes declined ~23% YoY in Nov19. LRs retail volumes were up 5.5% YoY, driven by higher sales of new RR Evoque (~+25%), new LR Discovery Sports (+4.4%), LR Discovery (+15.5%) and RR Sport (~+5%). Against the backdrop of a downturn in the global automotive market, we were pleased to see our sales grow in the US and China. Despite the ongoing headwinds in China, we continue to see green shoots of recovery in our sales there.

JLR has endured a turbulent operating environment over the last two 29 November 2019 years, led by a troika of adverse macro, product mix (due to pipeline favoring Jaguar) and market mix (due to the underperformance in China led by product quality issues, high inventory, high discounts and low dealer profitability). aforementioned challenges, particularly on product/market mix, are likely to ease based on product pipeline visibility and initiatives undertaken by JLR in China. JLRs product pipeline is dominated by LR, with four of the five new product launches over the next 2-3 years coming from the LR brand. In China, JLR has been focused on (a) reducing inventory (now at lowest levels since 2017), (b) improving dealer profitability and (c) brand-led pull strategy. JLRs cost-cutting initiatives under Project Charge have started reflecting in P&L;, with GBP0.5b of the targeted GBP1b of cost savings achieved till Sep19 and the balance GBP0.5b on track to be achieved in 2HFY20.

whereas Land Rover (LR) volumes were up ~5% YoY at 34.9k units (our JLRs retail volumes declined ~5.5% YoY in Oct19, as the recovery in China (+16%) was offset by the fall in the UK (-19%) and RoW (-11%). China witnessed the fourth consecutive month of a recovery in volumes. Jaguars retail volumes declined ~23% YoY, led by a decrease in sales for all models, except I-Pace. LRs retail volumes grew marginally by 2.4% YoY, driven by higher sales of new Evoque (+31%), LR Discovery Sports (+3%) and RR Sport (+7%). Land Rover year-on-year global growth continues; with the latest generation of our ever-popular luxury compact Range Rover Evoque now available in all regions. Sales of the comprehensively updated best-selling Land Rover Discovery Sport are ramping up well. The Range Rover Sport, also remains a key performer, with particularly strong sales in North America and China.

In Q2FY20 Tata Motors Limited (TML) posted consolidated revenue of Rs. 65,432 cr (down 9.2% YoY) on continued weaker sales volume. TML standalone revenue dropped by 44% YoY while revenue from Jaguar Land Rover (JLR) recorded decent growth of 7% YoY. Retail sales in china was the main driver of growth for JLR as it increased 24.3% YoY...

JLR's China volumes on the mend; Brexit muddies waters! JLR volumes have exhibited resilience in recent months, as a favourable base coincides with improvement in China business. Q2FY20 volumes at 1.35 lakh were up 3% YoY and 13% QoQ. Retail volumes (1.29 lakh units) were flattish on a yearly as well as sequential basis (China up 24% YoY, 8% QoQ). These prints represent tangible progress for JLR given the 15 consecutive months of contraction in overall Chinese auto industry volumes. However, prevailing uncertainty over Brexit negotiations would over the...