Tata Motors Ltd. share price target

JLR's wholesale volumes grew 3.8% YoY and 1.5% MoM in December 2017 to 55,066 units (including China JV's 10,269 units). Jaguar volumes grew 6% YoY to 16,826 units against our estimate of 12,000 units due to lower XE sales. Land Rover (LR) volumes increased 2.8% YoY to 38,240 units against our estimate of 54,750 units, led by ramp-up of all-new Discovery and RR Velar. For 3QFY18, JLR wholesales grew 4.5% YoY to 159,067 units, led by 12.4% YoY growth in Land Rover sales while Jaguar sales fell 12.5% YoY to 42.4k units. JLR's retail volumes increased marginally by 0.6% YoY and 6.4% MoM to 55,697units. The 4.1% YoY increase in LR volumes was partially offset by 7.8% YoY decline in Jaguar volumes.

Tata Motors' (TML) Q2FY18 results came in above estimates. Consolidated revenues came in at | 70156 crore (up 6.5% YoY, 19.9% QoQ), above our estimate of | 68487 crore. Reported consolidated EBITDA margins were at 13.9% (our estimate: 12.9%) against 10.7% in Q2FY17. The company reported a consolidated PAT of | 2501.7 crore (our estimate: | 2322.3 crore) against | 848.2 crore in Q2FY17 and | 3199.9 crore in Q1FY18 JLR revenues of 6.3 bn (up 6.2% YoY, 6.3% QoQ), came in above...

JLR's EBITDA margin at 11.8% surprised, as hedging losses eased to GBP 337 mn (vs. GBP 453 mn QoQ) offsetting launch cost of Velar in the quarter. Going forward, total hedging losses (assuming currency is stable) are expected to be lower at ~ GBP 1.1 bn (~GBP 800 mn within 1 year) vs. GBP 2.5 bn Y..

Tata Motors Ltd Q2FY18 results comment Revenue grew by 20.85% to Rs. 70690.65 Cr in Q2FY18 when compared to the previous quarter. Also, it increased by 11.26% when compared with Q2FY17.

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...