Tata Motors - Apr-13 volumes: Below est, with 15% YoY decline to 51,160 units - Motilal Oswal

- Total Apr-13 volumes declined by 14.9% YoY (-29.6% MoM) to 51,160 units (v/s est 54,500).

- Domestic M&HCV volumes grew 2% YoY (-33% MoM) to 10,002 units (v/s est 8,500 units). Our channel check indicates that Tata Motors & Ashok Leyland have implemented a price hike of 1-1.5% effective Apr-13. We estimate volume growth (incl exports) of 5% in FY14.

- Domestic LCVs volume growth moderated to 5% YoY (-38% MoM) to 26,023 units (v/s est 29,000). Growth in LCVs have been impacted with delayed impact of weak economic growth. We estimate volume growth (incl exports) of 12% in FY14.

- Passenger cars de-grew by 52% YoY (flat MoM) to 8,918 (v/s est 10,000) as it continues to struggle due to weak brand perception and higher competitive intensity. Under new management team, the company is making efforts to improve its positioning in passenger car business. We estimate volume growth (incl exports) of 5% in FY14.

- UV volumes declined by 34% YoY (-23% MoM) at 2,652 units (v/s est 2,935). We estimate volume growth (incl exports) of 5% in FY14.

- The stock trades at 8.6x FY14E consolidated EPS and 7.4x FY15E consolidated EPS. Maintain Buy.

Source : Equity Bulls

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