Maintain 'buy' on Tata Motors – TP Rs.320 - Geojit BNP Paribas Financial Services

- Buy rating on Tata Motors is maintained with the target price of Rs.320 over one year.

- Led by healthy sales of Evoque in key markets like China and the UK, the company reported overall sales of 28215 units in June 2012, a growth of 39% yoy.

- Land Rover sales for the month were 24386 units representing growth of 49% yoy. Jaguar sales for the month were 3829 units representing a decline of 5% yoy.

- Overall sales growth was 7% ahead of market estimates for June and 2% ahead for the quarter. JLR sales growth for April – June quarter has been 34% as against sales growth of Audi at 14%,BMW at 6% and Mercedes Benz at 4%.

- Implied growth expectation from the JLR portfolio for the rest of FY13 is 12% yoy.

- Maintain 'buy' rating with a target price of Rs.320 over one year, the potential upside is 39.6% from the current market price of Rs.229 range.

- Healthy overall volume growth as seen in June 2012, steady operating margin performance and improvement in global sentiment should drive stock performance in 2HCY12.

Source : Equity Bulls

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