Tata Motors - August 2012 Sales Update - Edelweiss

Tata Motors (TTMT IN, BUY, TP: INR315)

- Total sales at ~72k units (up 12.1% YoY, down 3.1% MoM) were largely in line with our expectations.

- LCV continued to grow at a healthy pace (up 15.6% YoY and 3.9% MoM). Though MHCV sales declined further (down 12.1% YoY, up 14.8% MoM) albeit at a lower pace. No production cut was taken in August.

- Growth in the passenger vehicle segment was driven by Nano (up 441% YoY and 18.6% MoM) and UV (up 38% YoY, down 9.9% MoM) segment. In cars, Indica reported 5% YoY growth whereas Indigo posted a YoY decline of ~29% in sales.

- We have a 'BUY' recommendation on the stock with TP of INR315.

Source : Equity Bulls

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