Tata Motors Ltd. share price target

We maintain BUY with a revised SOTP-based TP of Rs 530 Tata Motors (TTMT) 2QFY18 EBIDTA at Rs 97bn (+38% YoY, +68% QoQ) beat estimates, owing to a recovery in JLRs margin. JLR reported net revenue of GBP 6.3bn (+12% YoY), while EBIDTA margins came in higher at 11.8% (+150bps YoY, +390bps QoQ), led by a reduction in hedging losses (GBP 343mn vs GBP454 in 1Q) and a richer model mix. Losses from the standalone business also reduced to Rs 2.7bn vs Rs 6.1bn in 2QFY18, led by strong growth in CVs and PVs.

few months and we expect it to continue to do so hereon as macros are improving and also a growth in the company's PV business over the next two years. Margins elevate on Fx hedge losses reduction at JLR and cost control in Indian business EBITDA margin at JLR came in at ~12% in Q2, which was significantly higher than the previous quarter. This was on the back of reduction of forex hedge book losses by over GBP 100 mn qoq. This was due to a favorable GBP-USD movement and unwinding of the hedges taken earlier. Total outstanding value of the hedge losses came down at GBP1.09 bn from GBP2.4 bn yoy. This was a significant reduction out of which ~GBP700 mn will mature in the coming one...

by volume growth of 6.2% YoY and realization growth of 5% YoY. EBITDA margins expanded 90bp YoY (+390bp QoQ) to 11.8% (v/s est 10.7%) driven by lower fx hedge loss, lower other expenses and operating leverage. Further higher share of China JV PAT, fx gains and lower depreciation boosted adj. PAT growth to 26% to GBP308m (est GBP169m). S/A Better mix and cost reduction propels EBITDA margins: Revenues grew 35% YoY (+53% QoQ) to INR138.9b (est INR130.9b) led by volume and realisation growth of 14% YoY and 18% respectively. EBITDA margin...

Land Rover (LR) volumes were up 9.2% YoY at 40,081 units (est. of 42,208), led by the ramp-up of the all-new Discovery in North America and China, and also RR Velar introduction in the UK and EU. JLR Sep-17 retail volumes increased 6.6% YoY (+69% MoM) to 65,097 units, led by an increase in LR and Jaguar volumes by 7.7% and 3.9%, respectively. Jaguar retail volumes were driven by F-Pace (to ~7.7k units) and XF (volumes up 29.4% YoY). Jaguar XE volumes declined 15.2% YoY. LR's retail volumes increased 7.7% YoY, mainly led by a continued rise in...

Tata Motors' (TML) Q1FY18 results came in below estimates on the operational front. Consolidated revenues came in at | 58651 crore (down 9.9% YoY), above our estimates of | 57049.8 crore. Reported consolidated EBITDA margins were at 11% (our estimate: 11.1%) vs. 12.9% in Q1FY17. The company reported a consolidated PAT of | 3200 crore (our estimate: | 4261.4 crore) JLR's net revenue of 5.6 billion (bn) (up 10.2% YoY, 11.2% QoQ) came in line with our estimate. JLR wholesale volumes were at...

Tata Motors' first quarter earnings missed analysts' expectations on all parameters. One-time gain related to JLR pension plan boosted profitability but excluding that one-off item, it would have been in a loss at PBT before forex gain/loss level. Consolidated profit grew sharply by 42% to Rs 3,200 crore for first quarter ended June 2017, driven by one-time gain of Rs 3,609 crore relating to recent changes designed to improve the sustainability of JLR's defined benefit pension plans. Revenue on consolidated basis declined 10% to Rs 58,493 crore due to translation impact from British pound to rupee. The company incurred a loss of Rs 515 crore at PBT before forex/EO level vis a vis a gain of Rs...

JLRs EBITDA margin at 7.9% was a sharp >400 bps miss, impacted by: (1) higher hedging losses (GBP 454 mn vs. estimate of GBP 300 mn), (2) higher Variable Marketing Expense (VME) and (3) operating deleverage given subdued volumes. Of the 3 factors, we are most worried about high VME despite no major

We cut our FY18/FY19 estimates and introduce FY20 estimates. We maintain BUY with a revised SOTP-based TP of Rs 516 Tata Motors (TTMT) 1QFY18 performance was a miss on account of lower JLR margins (7.9%), led by lower volumes, higher costs associated with launches and rise in staff costs. Standalone margins also were below estimates, owing to an inferior product mix and GST transition-related costs.

ICICI Securities Ltd | Retail Equity Research Tata Motors' (TML) Q4FY17 results came in above our estimates. Consolidated revenues came in at | 77217 crore (down 2.9% YoY, up 14.3% QoQ). Net revenue of 7268 mn (up 10.2% YoY, 11.2% QoQ) came in above our estimates, with the beat attributable to higher than estimated volumes. JLR wholesale volumes were at 175000 units (including China JV), up 7.7% YoY, 14.9% QoQ against our estimate of 144,736 units. Standalone revenues were at | 13586.7...

JLR's EBITDA margin at 14.5% positively surprised partly as hedging losses eased (GBP 315 mn vs. GBP 455 mn QoQ) and was on-par with the underlying operating exchange (overall net gain of GBP 10 mn).