Reiterate 'Buy' on Tata Motors - TP hiked to Rs.375 - Geojit BNP Paribas Financial Services

- Buy rating on Tata Motors is reiterated with an increased target price of Rs.375 from the earlier target price of Rs.360 over one year. Hike in target price is in line with revision in JLR and domestic business estimates.

- JLR sales growth in China remains healthy. This was corroborated by low dealer discounts, minimum inventory with dealerships and higher capacity utilization in plants.

- Expected sales growth of JLR in China is hiked to 54% in FY13.

- Strong demand for SUVs, replacement cycle of 4-5 years, a healthy innovation pipeline and dealer expansion inti tier 2 and tier 3 markets for most premium/ luxury car manufacturers including JLR would help mitigate the challenges of a general slowdown that are impacting other segments of China's auto market.

Source : Equity Bulls

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