Accumulate Tata Motors with SOTP based target of Rs.296 - Kotak

With almost 70% sales coming in from JLR, Tata Motors' success hinges over the performance of JLR. We expect JLR to continue the growth momentum over the next few years. Strong demand from developing countries coupled with new launches should aid JLR's volume growth over the medium term.

We expect JLR's geography mix and product mix to improve going ahead. On standalone operations, we expect FY13 to be a difficult year but expect recovery in FY14 and that will be critical for expected strong earnings growth in FY14.

We initiate coverage on Tata Motors (TAMO) with an ACCUMULATE rating and SOTP based price target of Rs296.

Source : Equity Bulls

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