Tata Motors Ltd. share price target

11 July 2020 Automobiles Jaguar Land Rover (JLR)s wholesale volumes declined 44.8% YoY to ~65.4k ~15% YoY at ~16.5k units. JLRs 1QFY21 retail sales declined ~42% YoY to ~74k, with LR decreasing ~38% and Jaguar ~52.5%. Jun20 retail sales fell ~25% YoY to 35.3k. This was the first month of retail for many markets, such as the UK. In Jun20, China (-7.4% YoY) and North America (+2.2% YoY) were particularly encouraging.

JLR bets on China's recovery and healthy response to the new Defender. TTMT 4QFY20 performance was operationally weak with S/A margins at -4.4% (PLe -3.3%), JLR margins at 4.8% (PLe 7%) and consol margins at 3.8% (PLe 6%). The miss in JLR margin was led by negative operating leverage and weak...

JLR's FCF position continues to improve (up 563 million YoY to -722 million). Cost, profit and cash improvement plan Project Charge' has delivered results well ahead of schedule (Exhibit 4), delivering 3.5 billion in savings by FY20 instead of the originally planned 2.5 billion. Now termed Charge+', TML aims to achieve further 1.5 billion savings by FY21E (half of these being non-recurring and structural). The company has also initiated a similar | 6,000 crore plan in India (includes | 3,000 crore of planned capex reduction). Also, JLR capex has been revised downwards by 40% to 2.5...

We lower our FY21/FY22 EBITDA by -18%/0% to factor weakness in volumes in both businesses and higher interest cost, resulting in PAT loss in both the years. adverse mix, and higher fixed cost led to a third quarter of EBITDA loss of We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business. While TTMTs India CV business is on a strong footing, the India PV business particularly would be severely challenged during such uncertain times as customers prefer proven Over the last three years, JLR had suffered from adverse product (growth led by Jaguar), market mix (decline in Chinas contribution), and increase in capex, resulting in negative FCFF in FY1820. We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business.

Domestic sales volume in March 2020 fell to 11,012 units (-84.0% YoY), taking FY20 domestic volumes to 442k units (-34.9% YoY), impacted by COVID-19 pandemic and planned transition to BS VI. JLR recorded FY20...

Consolidated Q3FY20 revenue dropped by 6.8% YoY to Rs. 71,676cr (+9.5% QoQ) impacted by M&HCV; decline and BSIV stock reduction. Volumes fell 12% YoY to 276k in Q3FY20, although Jaguar Land Rover...

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-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.