Tata Motors Ltd. share price target

Project Charge+ delivered on the outlined 6 billion cast, cost savings as per schedule while similar India programme overperformed by | 3,300 crore. Under Reimagine', Project Refocus seeks to deliver value of up to 1 billion across business areas in FY22E. At JLR, focus on efficiencies (cash flow breakeven reduced to ~FY14 levels), quality of sales (via lower variable marketing expenses and warranty costs) and better product mix (in favour of Land Rover) are seen leading a structural shift in margins towards a higher plane. The company is also targeting tighter control over fixed costs in India,...

TTMT's 4QFY21 results were operationally in-line, both for JLR and S/A. However, adjusted for one-offs, PAT came in lower at Rs27.5b (PLe Rs35.5b). S/A performance continues to improve led by 110bp QoQ expansion in PV/CV margins each at 4.9%/9.1%. Yet, JLR margins contracted by 50bp QoQ to 15.3% led by lower ASPs at GBP53.3k/unit (v/s 58.3k/unit in 3QFY21). China...

Tata Motors (TTMT) hosted an Investors Day for the JLR business (Link for Change in Estimates | Target | Reco as 1) positive cash-flow from FY23 (v/s FY22 targeted earlier due to one-time...

Current tax expense for the quarter jumped 22.7% to Rs 675.45 crore as against Rs 550.33 crore in Q3 December 2019. For Jaguar Land Rover (JLR), the quarter reflected strong sequential recovery in retails in all the markets except UK where Q3 remains seasonally lower. The business achieved 6.7% EBIT margin and strong positive free cash flows of 0.6b reflecting...

As supply chain issues in various markets get resolved, we expect JLR revenues to pick up gradually. Also, vaccination drive progress in India enabling re-opening of schools, offices could increase demand for commercial vehicles adding to overall demand. We reiterate our BUY...

We downgrade TTMT to reduce (from Hold) with TP of Rs231 (v/s Rs172) as we feel the sharp rally in stock recently factors in benefits expected from softer Brexit norms and consolidated entity turnaround to profits. This is captured by forward valuations reaching 10 year LPA. Also Looking at peer valuations, BMW and Daimler are trading at 0.2x EV/ Sales and 3-4x EV/EBIT with better growth and balance sheet. With the weak financial performance in...

India PV performance in 9MFY21 has defied the industry (TML volumes up 39% vs. 16% industry decline) translating into 300 bps market share gain and healthy profitability at EBITDA level (Q3FY21 EBITDA was highest in 10 quarters). Excellent response to the Altroz, Harrier and New Forever' portfolio along with upcoming Safari, Hornbill launches places PV business in good stead. CV segment is also recovering fast, aided by return of infra and mining demand in trucks and LCV resilience. We believe the domestic CV industry has turned a corner (~2 years of cyclical downturn nearly...

Domestic auto industry volumes have been on a steady mend in the months post lifting of lockdown restrictions. Manufacturing and distribution activities have been getting ramped up gradually since June 2020, in step with the rest of the economy. However, the impact of the pandemic on the supply chain continues to inhibit a complete return to production normalcy. Nevertheless, most automotive industry segments have reported successive improvement in offtake throughout June-November 2020 (Exhibit 1) on the back of (i) initial bounce provided by pent-up aspect,...